Turn Page 
Notes to the consolidated financial statements
Year ended 31 July 2007
25. Obligations under finance leases
| Gross 2007 £m |
Gross 2006 £m |
Net 2007 £m |
Net 2006 £m |
|
|---|---|---|---|---|
| Due within one year | 23 | 24 | 17 | 18 |
| Due in one to five years | 57 | 50 | 41 | 37 |
| Due in over five years | 27 | 28 | 22 | 20 |
| 107 | 102 | 80 | 75 | |
| Less: future finance charges | (27) | (27) | ||
| Present value of finance lease obligations | 80 | 75 | ||
| Current | 17 | 18 | ||
| Non-current | 63 | 57 | ||
| Total obligations under finance leases | 80 | 75 |
It is the Group’s policy to lease certain of its property, plant and equipment under finance leases. The average lease term is seven years (2006: seven years). For the year ended 31 July 2007, the average effective borrowing rate was 5.3 per cent (2006: 4.7 per cent). Finance lease obligations included above are secured against the assets concerned.
The currency analysis of the present value of finance lease obligations is as follows:
| Net 2007 £m |
Net 2006 £m |
|
|---|---|---|
| Sterling | 5 | 5 |
| US dollar | 24 | 26 |
| Euro | 42 | 37 |
| Other | 9 | 7 |
| 80 | 75 |