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6. Net finance costs
| All figures in £ millions | Notes | 2007 | 2006 |
|---|---|---|---|
| Interest payable | (114) | (117) | |
| Net foreign exchange losses | (25) | (2) | |
| Other losses on financial instruments in a hedging relationship: | |||
| – fair value hedges | (1) | – | |
| – net investment hedges | (1) | (2) | |
| Other losses on financial instruments not in a hedging relationship: | |||
| – derivatives | (9) | (12) | |
| Finance costs | (150) | (133) | |
| Interest receivable | 19 | 23 | |
| Finance income in respect of employee benefits | 24 | 10 | 4 |
| Net foreign exchange gains | 8 | 21 | |
| Other gains on financial instruments in a hedging relationship: | |||
| – fair value hedges | – | – | |
| – net investment hedges | – | – | |
| Other gains on financial instruments not in a hedging relationship: | |||
| – amortisation of transitional adjustment on bonds | 1 | 8 | |
| – derivatives | 6 | 3 | |
| Finance income | 44 | 59 | |
| Net finance costs | (106) | (74) | |
| Analysed as: | |||
| Net interest payable | (95) | (94) | |
| Finance income in respect of employee benefits | 24 | 10 | 4 |
| Net finance costs reflected in adjusted earnings | (85) | (90) | |
| Other net finance (costs)/income | (21) | 16 | |
| Total net finance costs | (106) | (74) |
The £1m net loss on fair value hedges comprises a £20m loss on the underlying bonds offset by a £19m gain on the related derivative financial instruments.