Financial Statements
7Net financing costs
| 2009 £m |
2008 £m |
|
|---|---|---|
| Interest payable on: | ||
| Bank loans and overdrafts | 31 | 71 |
| Other loans | 230 | 280 |
| Loans from joint ventures | 1 | |
| Obligations under finance leases | 1 | 2 |
| 262 | 354 | |
| Development interest capitalised | (38) | (43) |
| 224 | 311 | |
| Interest receivable on: | ||
| Deposits and securities | (17) | (20) |
| Other finance (income) costs: | ||
| Expected return on pension scheme assets | (5) | (5) |
| Interest on pension scheme liabilities | 5 | 4 |
| Valuation movements on translation of foreign currency debt | 30 | (1) |
| Hedging reserve recycling | (30) | 1 |
| Net financing expenses - pre exceptional | 207 | 290 |
| Exceptional item† | ||
| Realisation of cash flow hedges | 119 | |
| 119 | ||
| Net financing costs | 326 | 290 |
| Total financing income | (52) | (26) |
| Total financing expenses | 378 | 316 |
| Net financing costs | 326 | 290 |
†Due to lower projected Group borrowings as a result of the deleveraging that took place during the year, certain interest rate swap arrangements were no longer required.
On close-out of these swaps, amounts previously charged to reserves have been recycled through the income statement.
Interest on development expenditure is capitalised at a rate of 5.5% (2008: 6.0%), with current year tax relief of £nil (2008: £nil).