Notes to the consolidated financial statements

5. Employee information continued

The average monthly number of employees of the Group during the year was:

	Year to 31.3.2009   Number	Year to 31.3.2008   Number
Northumbrian Water Limited	2,966	2,890
Water and waste water contracts	156	155
Other	25	25
	3,147	3,070

The information required by Schedule 6 of the Companies Act is contained in the directors’ remuneration report under directors’ emoluments, directors’ pensions and pension benefits, directors’ interests in shares and debentures, directors’ interests in LTIP awards and directors’ interests in shares under the Share Incentive Plan.

6. Finance costs payable/(income receivable)

	Year to  31.3.2009   £m	Year to   31.3.2008   £m
Finance costs payable on debentures, bank and other loans and overdrafts	122.8	125.3
Amortisation of discount, fees, loan issue costs and other financing items	(4.9)	(5.6)
Accretion on index linked bonds	22.4	16.2
Interest cost on pension plan obligations	38.5	35.2
Finance costs payable on hire purchase contracts and finance leases	4.7	2.4
Total finance costs payable	183.5	173.5
Expected return on pension plan assets	(44.3)	(48.4)
Finance income receivable	(17.5)	(17.1)
Net finance costs payable	121.7	108.0

7. Taxation

(a) Tax on profit on ordinary activities

	Year to   31.3.2009   £m	Year to   31.3.2008   £m
Current tax:
Current income tax charge at 28% (2008: 30%)	33.0	28.1
Income tax reported in equity on cash flow hedges	0.1	–
Adjustment in respect of prior periods	(1.1)	(2.7)
UK corporation tax	32.0	25.4
Overseas tax	0.1	0.2
Total current tax	32.1	25.6
Deferred tax:
Origination and reversal of temporary differences in the year at 28%	13.8	15.1
Effect of changes in tax rates and laws:
– Impact of Industrial Buildings Allowances abolition	117.2	–
– Impact of opening rate reduction	–	(35.4)
Income tax reported in equity on cash flow hedges	(0.1)	–
Adjustment in respect of prior periods	1.6	6.7
Total deferred tax	132.5	(13.6)
Tax charge in the income statement	164.6	12.0