Xero’s Settle‑Up Report: UK Public Demands Tough Action on Late Payments
When Xero rolled out its latest “Settle‑Up” report, the headline that popped up on tongues was simple: the people want the government to crack down on late payments. A solid 62% of those surveyed said this should be a priority on the policy agenda.
What the Numbers Say
- 80% of respondents are firm believers that big companies have no excuse for delaying payments to their suppliers.
- More than half – 56% – are surprised that the government hasn’t introduced measures to stop late‑paying giants. It’s like finding out your favorite coffee brand still gets in line without a queue.
- 70% of people label the practice as “theft” or bullying, proving that the frustration runs deeper than petty forbearance.
- 77% think the onus is on the government to enforce responsible business behaviour, not on the companies themselves.
Why the Fuss Matters
For years, policymakers promised to level the playing field between the big players and the small firms that keep the economy humming. Yet last year alone, small businesses lost an estimated £1.6 bn due to these late‑pay headaches.
You can’t argue that small firms are stuck behind giant corporate elevator doors. If the public feels that government action is overdue, it’s clear that the current status quo is simply not cutting it.
Takeaway
Xero’s report has put the spotlight back on late payments and the political will needed to fix them. It’s a heads‑up that the public’s patience is running thin, and that the government’s next move could ripple across the entire small‑business landscape.
Bad payments are bad business
Public Outrage Over Late Payments Hits Small Businesses Hard
When you look at how the public feels about businesses that keep putting payments on hold, it’s pretty clear: they’re not exactly thrilled.
The Shock Factor
- More than 61% of respondents say they were shocked by how badly this problem is going on.
- Nearly 79% declared that they don’t want local small businesses to suffer.
Why It Matters to Everyday Folks
- All of 86% think not getting paid would create huge personal stress.
- About 47% fear they won’t have enough to pay household bills.
- And 41% worry they won’t be able to buy food for themselves or their families.
Ethics: A Big Deal for Shoppers
- 72% of consumers would skip companies that have a habit of paying suppliers late.
- We’re also seeing a solid 79% who think late payments are downright unethical.
- And a whopping 80% say there’s no excuse for the delay when we’ve got digital and contactless payments.
ESG (Environmental, Social & Governance) Meets Shopping Cart
- About 70% of people will buy from businesses that pay their suppliers and small businesses on time.
- In comparison, supporting local charities was only a 52% favorite, while paying a fair amount of tax ticked just 56%.
What the Business‑Side Says
Alex von Schirmeister, UK Managing Director at Xero, lights up the issue.
“Late payments keep business owners up at night. All they want is the cash they are owed, so they can invest, grow and, quite frankly, keep their heads above water. And now we can see that the great British public cares too. They are shocked at big business inertia and want to see governments take further action. That’s why new late payment legislation is required and we hope to see this announced in the King’s Speech next week.”
It’s a wake‑up call: the next time a business takes too long to pay its suppliers, you’ll be watching closely and possibly calling the council. The whole country is ready to put an end to this kind of drama.
Towards a solution
Reimagining the Payment Game in the UK
It’s pretty clear: fixing the payment culture in the UK starts with the big players. A whopping 75 % of everyday folks think that large businesses should step up their payment game. But the first move? Let’s change the language we use about missed payments and shout out how serious this mess has become.
What people actually say
- “Big business bullying” – 34 % of Brits feel the term captures the ruthless side of delayed bills.
- “Big business theft” – 32 % are calling it outright shop‑lifting from the small‑biz world.
- Traditional “unapproved debt” (Xero’s favorite) still resonates, but it feels a bit bland compared to the buzzwords the public loves.
Changing the vocabulary isn’t just about buzz; it’s about sending a clear signal: late payments are a real problem, not just a polite misunderstanding.
Concrete steps the big firms could take
- Mandatory reporting – Require companies to disclose how much unsecured debt they’re using to keep the lights on.
- Introduce a Fair Buyers’ Act – This could empower regulators to hold offenders to account more efficiently.
- Data transparency – Publicly share existing late‑payment statistics. More eyes on repeat offenders means more pressure to change.
Why does this matter?
- Small businesses will have a clearer picture of who’s trustworthy, allowing them to pick suppliers wisely.
- Companies that pay on time can be celebrated—think “payment champions” badges and real commercial perks.
- Overall, it fuels a healthier business ecosystem where fairness wins the day.
Wrap‑up
The goal is simple: make late payments a thing of the past, spotlight the bad actors, and reward the good ones. Let’s give those “big business” labels a little makeover, and finally get the UK market working in harmony.
