The Scottish Government Consolidated Accounts for the year ended 31 March 2018

Annual report of consolidated financial results of the Scottish Government, its Executive Agencies and the Crown Office, prepared in accordance with IFRS


15. Commitments Under Leases

15a. Operating Leases

Total future minimum lease payments under operating leases are given in the tables below for each of the following periods:

Obligations under operating leases comprise:

  2017-18 2016-17
£m £m
Land
Within one year 8 1
Between two and five years (inclusive) 27 3
After five years 27 6
Total 62 10
Buildings
Within one year 35 37
Between two and five years (inclusive) 110 116
After five years 148 148
Total 293 301
Other Commitments
Within one year 21 20
Between two and five years (inclusive) 24 30
After five years - -
Total 45 50

15b. Finance Leases

Total future minimum lease payments under finance leases are given in the tables below for each of the following periods:

Obligations under finance leases comprise:

  2017-18 2016-17
£m £m
Buildings
Within one year 5 6
Between two and five years (inclusive) 19 19
After five years 60 65
Total 84 90
Less the interest element (60) (65)
Total 24 25
Other Commitments
Within one year - -
Between two and five years (inclusive) 1 1
After five years - -
Total 1 1
Less the interest element - -
Total 1 1

This total net obligation under finance leases is analysed in Note 12.

15c. Commitments Under Leases

Within the Scottish Government core estate, the main leasing arrangements are entered into on the basis of Market Rent, often incorporating a rent-free period. Subsequent rent reviews are calculated on the basis of (i) the market rental value or (ii) the passing rental if the Market Rent is less than the passing rental at the time of the rent review (i.e. upwards only). The Scottish Government have some properties where the rent at review is calculated by reference to the Retail Prices Index or other index (often also upwards only).

The ground leases covering the land at Saughton House and the Logie Weir Fish Counter are the only properties which have terms of renewal. All other leases have no terms of renewal or purchase options.

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