Section 5
5.1 Finance income
| 2023/24 total £000 | 2022/23 total £000 | |
| Bank interest | 2,391 | 884 |
| Interest income on finance leases | 16 | 20 |
| Total | 2,407 | 904 |
Finance income represents interest received on assets and investments in the period. Bank interest received is from the Trust’s Government Banking Scheme (GBS) current account, with the year on year increase due to a rise in the Bank of England base rate. (2023/24: year-end base rate was 5.25%, 2022/23: year-end base rate was 4.25%).
Interest on finance leases relates to the introduction of IFRS 16 Leases and relates to subleased receivables in note 10.3.
5.2 Finance cost
| 2023/24 total £000 | 2022/23 total £000 | |
| Interest on lease obligations1 | 130 | 119 |
| Total interest expense | 130 | 119 |
| Unwinding of discount on provisions | 9 | (4) |
| Total finance costs | 139 | 115 |
1: Interest on lease obligations is in respect of lease liabilities recognised in line with IFRS 16 Leases. Lease liabilities are described further in note 12.2.
5.3 The late payment of commercial debts (interest) Act 1998
The Trust incurred £123 of interest and charges for late payment of commercial debts in 2023/24 (2022/23: £829).
5.4 Impairment of assets (property, plant and equipment)
| Net impairments charged to operating surplus resulting from: | 2023/24 total £000 | 2022/23 total £000 |
| Changes in market price1 | (349) | 8,358 |
| Total net impairments charged to operating surplus | (349) | 8,358 |
| Impairments charged to the revaluation reserve1 | 528 | 5 |
| Total net impairments | 179 | 8,363 |
1: Impairment reversals of £348,824 relate to the year-end physical inspection revaluation that were charged to operating income as discussed in note 7.3. £528,468 has been charged to the revaluation reserve.
5.5 Other gains and (losses)
| 2023/24 total £000 | 2022/23 total £000 | |
| Gain on disposal of right of use assets - lease termination | - | 4 |
| (Loss) on disposal of property, plant and equipment | (49) | (19) |
| Total (loss) on disposal of assets | (49) | (15) |
The gain on disposal of right of use assets in 2022/23 relates to the termination of leases at Jarvis House, Lincoln and Freshney Green, Grimsby.
The loss on disposal of property, plant and equipment largely relates to the scrapping of furniture and fittings following an annual asset verification exercise. (2022/23: £19,000 loss regarding the scrapping of equipment relating to the disposal of Freshney Green).
