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Net finance costs
 12 Months Ended
Dec. 31, 2018
Text block [abstract]  
Net finance costs

6. Net finance costs

 

All figures in £ millions

    Notes      2018      2017      2016  

Interest payable on financial liabilities at amortised cost and associated derivatives

         (42 )       (99 )       (74 ) 

Net foreign exchange losses

         (36 )       —          (21 ) 

Finance costs associated with transactions

         (1 )       (6 )       —    

Derivatives not in a hedge relationship

         (7 )       (5 )       (2 ) 

Derivatives in a hedge relationship

         (5 )       —          —    
     

 

 

     

 

 

     

 

 

  

Finance costs

         (91 )       (110 )       (97 ) 
     

 

 

     

 

 

     

 

 

  

Interest receivable on financial assets at amortised cost

         18        20        15  

Net finance income in respect of retirement benefits

      25        11        3        11  

Net foreign exchange gains

         —          44        1  

Derivatives not in a hedge relationship

         6        12        10  

Derivatives in a hedge relationship

         1        1        —    
     

 

 

     

 

 

     

 

 

  

Finance income

         36        80        37  
     

 

 

     

 

 

     

 

 

  

Net finance costs

         (55 )       (30 )       (60 ) 
     

 

 

     

 

 

     

 

 

  

 

Included in interest receivable is £1m (2017: £1m, 2016: £1m) of interest receivable from related parties. There was a net movement of £nil on fair value hedges in 2018 (2017: £1m, 2016: £nil), comprising a gain of £4m (2017: gain of £37m, 2016: loss of £4m) on the underlying bonds, offset by a loss of £4m (2017: loss of £36m, 2016: gain of £4m) on the related derivative financial instruments.