6. Net finance costs
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All figures in £ millions |
Notes | 2017 | 2016 | 2015 | ||||||||||||
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Interest payable |
(99 | ) | (74 | ) | (61 | ) | ||||||||||
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Net foreign exchange losses |
— | (21 | ) | (36 | ) | |||||||||||
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Finance costs associated with transactions |
(6 | ) | — | — | ||||||||||||
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Derivatives not in a hedge relationship |
(5 | ) | (2 | ) | (3 | ) | ||||||||||
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Finance costs |
(110 | ) | (97 | ) | (100 | ) | ||||||||||
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Interest receivable |
20 | 15 | 15 | |||||||||||||
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Net finance income in respect of retirement benefits |
25 | 3 | 11 | 4 | ||||||||||||
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Net foreign exchange gains |
44 | 1 | 43 | |||||||||||||
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Derivatives not in a hedge relationship |
12 | 10 | 9 | |||||||||||||
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Derivatives in a hedge relationship |
1 | — | — | |||||||||||||
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Finance income |
80 | 37 | 71 | |||||||||||||
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Net finance costs |
(30 | ) | (60 | ) | (29 | ) | ||||||||||
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Included in interest receivable is £1m (2016: £1m, 2015: £1m) of interest receivable from related parties. There was a net movement of £1m on fair value hedges in 2017 (2016: £nil, 2015: £nil), comprising a gain of £37m (2016: loss of £4m, 2015: gain of £22m) on the underlying bonds, offset by a loss of £36m (2016: gain of £4m, 2015: loss of £22m) on the related derivative financial instruments.