Financial statements
Notes to the financial statements
Next
Previous
25 Provisions
| 2007 Property £m |
2007 Redundancy £m |
2007 Total £m |
|
|---|---|---|---|
| Opening balance | 5 | 5 | 10 |
| Charge for the year | 4 | 11 | 15 |
| Utilised in the year | (2) | (5) | (7) |
| Closing balance | 7 | 11 | 18 |
| 2006 Property £m |
2006 Redundancy £m |
2006 Total £m |
|
|---|---|---|---|
| Opening balance | 6 | 6 | 12 |
| Charge for the year | 1 | 4 | 5 |
| Utilised in the year | (2) | (5) | (7) |
| Closing balance | 5 | 5 | 10 |
The provision for redundancy relates to staff reductions announced prior to 31 March 2007. Most of the provision is expected to be utilised in the next year.
The Group has a number of leasehold properties whose rent and unavoidable costs exceed the economic benefits expected to be received. These costs arise over the period of the lease, and have been provided for to the extent they are not covered by income from subleases. The leases covered by the provision have a remaining term of up to nine years.