16 Finance lease liabilities

Minimum
lease payments		 Present value
of minimum
lease payments
2008
£m		 2007
£m		 2008
£m		 2007
£m
Amounts payable under finance leases:
        
Within one year 2.4 1.6 1.9 1.4
In the second to fifth years inclusive 5.6 2.7 4.6 2.3
After five years 3.1 1.0 2.8 0.9
  11.1 5.3 9.3 4.6
Less: future finance charges (1.8) (0.7) n/a n/a
Present value of lease obligations 9.3 4.6 9.3 4.6
 
Current lease liability
Non current lease liability		 1.9 1.4
7.4 3.2
9.3 4.6

It is the Group’s policy to lease certain of its property, plant and equipment under finance leases. The average lease term is 5 years (2007: 3 years). For the year ended 31 December 2008, the average effective borrowing rate was 6% (2007: 7%). Interest rates are fixed at the contract date. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

All lease obligations are denominated in sterling. The fair value of the Group’s lease obligations approximates to their carrying amount. The Group’s obligations under finance leases are secured on the asset to which the leases relate.