Interest payable
Interest payable on borrowings held at amortised cost241.7249.1
Release of taxation interest accrual(13.3)
Fair value (gains)/losses on debt and derivative instruments(1)
Fair value hedge relationships:
Designated swaps177.3(93.5)
Financial instruments at fair value through profit or loss:
Borrowings designated at fair value through profit or loss(2)(32.6)17.6
Held for trading derivatives – economic hedge53.6(13.5)
Held for trading derivatives – 2010–15 regulatory hedges(61.5)(16.1)
Held for trading derivatives – 2015+ regulatory hedges(67.6)52.6
Held for trading derivatives – electricity hedges4.21.5
Net receipts on swaps and debt under fair value option(8.7)(7.6)
Held for trading derivatives – other(3)6.44.0
Net fair value (gains)/losses on debt and derivative instruments(4)(129.2)41.5
Net pension interest expense (see note 19)1.5

* The comparatives have been restated to reflect the requirements of IAS 19 (Revised) 'Employee Benefits'. See accounting policies for details.


  1. Fair value (gains)/losses on debt and derivative instruments includes foreign exchange gains of £60.3 million (2013: £14.6 million losses), excluding those on instruments measured at fair value through profit or loss. These gains/losses are largely offset by fair value losses/gains on derivatives.
  2. Includes £11.1 million losses (2013: £1.5 million losses) on the valuation of debt reported at fair value through profit or loss due to changes in credit spread assumptions.
  3. Includes fair value movements in relation to other economic hedge derivatives relating to debt held at amortised cost.
  4. Includes £8.1 million income (2013: £8.3 million) due to interest on swaps and debt under fair value option.

Interest payable for the year ended 31 March 2014 is stated net of £19.4 million (2013: £14.3 million) borrowing costs capitalised in the cost of qualifying assets within property, plant and equipment and other intangible assets during the year. This has been calculated by applying a capitalisation rate of 3.8 per cent (2013: 4.3 per cent) to expenditure on such assets as prescribed by IAS 23 'Borrowing Costs'.