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Derivative financial instruments and hedge accounting (Tables)
 12 Months Ended
Dec. 31, 2022
Text block [abstract]  
Summary of Outstanding Derivative Financial Instruments
The Group’s approach to the management of financial risks is set out in note 19. The Group’s outstanding derivative financial instruments are as follows:
 
               
                  
2022
                          
2021
  
               
All figures in £ millions
   
Gross
notional
amounts
     
Assets
     
Liabilities
    
 
    
Gross notional
amounts
     
Assets
     
Liabilities
  
               
Interest rate derivatives – in a fair value hedge relationship
   
 
177
 
   
 
–
 
   
 
(11
) 
          
 
168
 
   
 
5
 
   
 
–
 
               
Interest rate derivatives – not in a hedge relationship
   
 
260
 
   
 
19
 
   
 
–
 
          
 
217
 
   
 
–
 
   
 
(9
) 
               
Cross-currency rate derivatives – in a hedge relationship
   
 
83
 
   
 
34
 
   
 
(43
) 
          
 
331
 
   
 
24
 
   
 
(21
) 
               
FX derivatives – in a hedge relationship
   
 
355
 
   
 
1
 
   
 
(9
) 
          
 
237
 
   
 
3
 
   
 
(1
) 
               
FX derivatives – not in a hedge relationship
   
 
573
 
   
 
5
 
   
 
(2
) 
  
 
 
 
  
 
193
 
   
 
–
 
   
 
(3
) 
               
Total
   
 
1,448
 
   
 
59
 
   
 
(65
) 
  
 
 
 
  
 
1,146
 
   
 
32
 
   
 
(34
) 
               
Analysed as expiring:
                                                             
               
In less than one year
   
 
        1,028
 
   
 
             16
 
   
 
             (11
) 
          
 
           393
 
   
 
               2
 
   
 
             (4
) 
               
Later than one year and not later than five years
   
 
420
 
   
 
43
 
   
 
(54
) 
          
 
679
 
   
 
30
 
   
 
(26
) 
               
Later than five years
   
 
–
 
   
 
–
 
   
 
–
 
  
 
 
 
  
 
74
 
   
 
–
 
   
 
(4
) 
               
Total
   
 
1,448
 
   
 
59
 
   
 
(65
) 
  
 
 
 
  
 
1,146
 
   
 
32
 
   
 
(34
) 
Summary of Interest Rate and Cross Currency Swaps
The Group uses a combination of interest rate and cross currency swaps to convert its
€
300m EUR debt.
 
         
    Receive    
Notional
   
    Receive    
coupon
  
FX rate
   
    Notional    
   
  Pay coupon  
         
€
100m
   
1.375%
  
GBPEUR:
1.1295
   
  £87m
   
3.51%  
         
€
181m
   
1.375%
  
GBPUSD:
1.206
   
£160m
   
3.402%  
         
  
€
19m
   
1.375%
  
GBPUSD:
1.206
   
  £23m
   
USD Libor  
+1.36%  
Summary of Instruments to Hedge Exposures to Changes in Interest Rates and Foreign Currency Risk Associated with Borrowings
The Group held the following instruments to hedge exposures to changes in interest rates and foreign currency risk associated with borrowings:
 
       
                  
2022  
  
       
All figures in £ millions
   
Carrying amount of
      hedging instruments
    
  Change in fair value of
hedging instrument
used to determine
hedge ineffectiveness
    
Nominal amounts of  
    hedging instruments  
  
       
Derivative financial instruments for interest rate risk
   
 
(11
) 
  
 
(16
) 
  
 
177  
 
       
Derivative financial instruments for currency risk
   
 
33
 
  
 
9
 
  
 
266  
 
 
       
                   
2021  
  
       
All figures in £ millions
   
Carrying amount of
      hedging instruments
     
  Change in fair value of
hedging instrument
used to determine
hedge ineffectiveness
    
Nominal amounts of  
    hedging instruments  
  
       
Derivative financial instruments for interest rate risk
   
 
5
 
   
 
(5
) 
  
 
168  
 
       
Derivative financial instruments for currency risk
   
 
24
 
   
 
(20
) 
  
 
168  
 
Summary of Amounts at the Reporting Rate Relating to Items Designated as Hedge Items
The amounts at the reporting date relating to items designated as hedge items were as follows:
 
           
                                 
2022  
  
           
All figures in £ millions
   
    Carrying amount of
hedged items
    
Accumulated amount of
fair value hedge
adjustments on the
hedged item included in
the carrying amount
     
Change in fair value of
hedged item used to
determine hedge
ineffectiveness
    
Hedge
            ineffectiveness
    
Line item in profit or  
loss that includes hedge  
ineffectiveness  
  
           
Interest rate risk
                                          
           
Financial liabilities – borrowings
   
 
(167
) 
  
 
11
 
   
 
15
 
  
 
(1
) 
  
 
Finance costs  
 
           
Currency risk
                                          
           
Financial liabilities – borrowings
   
 
(167
) 
  
 
n/a
 
   
 
(14
) 
  
 
–
 
  
 
n/a  
 
 
           
                                  
2021  
  
           
All figures in £ millions
   
    Carrying amount of
hedged items
    
Accumulated amount of
fair value hedge
adjustments on
the hedged item
included in the carrying
amount
    
Change in fair value of   
hedged item used to   
determine hedge   
ineffectiveness   
     
Hedge
            ineffectiveness
     
Line item in profit or  
loss that includes hedge  
ineffectiveness  
  
           
Interest rate risk
                                           
           
Financial liabilities – borrowings
   
 
(173
) 
  
 
(4
) 
  
 
5   
 
   
 
–
 
   
 
n/a  
 
           
Currency risk
                   
 
 
 
                  
           
Financial liabilities – borrowings
   
 
(173
) 
  
 
n/a
 
  
 
20   
 
   
 
–
 
   
 
n/a  
 
Summary of Amounts Related to Items Designated as Hedging Instruments
The amounts related to items designated as hedging instruments were as follows:
 
           
                                
2022  
  
           
All figures in £ millions
   
Carrying
amount of
hedging
    instruments
    
Change in
value of hedging
instrument used to
determine hedge
ineffectiveness
    
Nominal
amounts
of hedging
instruments
    
Hedging
gains/(losses)
recognised in
OCI
    
Hedge  
ineffectiveness  
recognised in  
profit or loss  
  
           
Derivative financial instruments
   
 
(50
) 
  
 
(31
) 
  
 
172
 
  
 
(31
) 
  
 
–  
 
           
Financial liabilities – borrowings
   
 
(89
) 
  
 
(5
) 
  
 
(88
) 
  
 
(5
) 
  
 
–  
 
 
           
                                
2021  
  
           
All figures in £ millions
   
Carrying
amount of
hedging
    instruments
    
Change in
value of hedging
instrument used to
determine hedge
ineffectiveness
    
Nominal
amounts
of hedging
instruments
    
Hedging
gains/(losses)
recognised in
OCI
    
Hedge  
ineffectiveness  
recognised in  
profit or loss  
  
           
Derivative financial instruments
   
 
(19
) 
  
 
(2
) 
  
 
(400
) 
  
 
(2
) 
  
 
–  
 
           
Financial liabilities – borrowings
   
 
(240
) 
  
 
4
 
  
 
(240
) 
  
 
4
 
  
 
–  
 
Disclosure of Derivative Financial Assets and Liabilities Subject to Offsetting Arrangements Derivative financial assets and liabilities subject to offsetting arrangements are as follows:
 
               
                 
2022
    
 
                    
2021
  
               
All figures in £ millions
   
Gross
    derivative
assets
     
Gross
    derivative
liabilities
    
Net
    derivative
assets/
liabilities
            
Gross
derivative
assets
     
Gross
    derivative
liabilities
    
  Net derivative
assets/
liabilities
  
               
Counterparties in an asset position
   
 
30
 
   
 
(17
) 
  
 
13
 
           
 
17
 
   
 
(12
) 
  
 
5
 
               
Counterparties in a liability position
   
 
29
 
   
 
(48
) 
  
 
(19
) 
  
 
 
 
   
 
15
 
   
 
(22
) 
  
 
(7
) 
               
Total as presented in the balance sheet
   
 
59
 
   
 
(65
) 
  
 
(6
) 
  
 
 
 
   
 
32
 
   
 
(34
) 
  
 
(2
)