Strategic report Governance Financial statements Other information SECTION 2: ASSETS AND LIABILITIES NOTES TO THE GROUP FINANCIAL STATEMENTS CONSOLIDATED STATEMENT OF FINANCIAL POSITION CONTINUED 2.11 Long term liabilities Lease liabilities are included within current other payables and non-current lease liabilities, being initially calculated in line with IFRS 16. On inception a lease liability is measured as the present value of future lease payments, discounted at the incremental borrowing rate implied within the lease. The future lease payments of the Group are fixed, except for those that relate to leases in a currency other than GBP, which may vary due to exchange rate movements. Interest expense is incurred in relation to these leases, which is recognised as an expense in the period to which payment relates, on an accruals basis. Year ended Year ended 30 June 2021 30 June 2020 £m £m Lease liabilities greater than 12 months 15.0 19.9 Finance costs and financing cash flows associated with the lease are reconciled below to show the movement in the year. Reconciliation of lease liability changes to cash flows Year ended Year ended 30 June 2021 30 June 2020 Note £m £m Opening balance – including discounted current cash flows 22.2 27.2 New lease in period 1.3 – Cash paid as rent 4 (4.0) (4.3) Termination of lease (0.4) (0.4) Lease expense recognised in finance costs 1.7 0.7 0.7 Current element of liability (4.8) (3.3) Long term liability 15.0 19.9 158 Hargreaves Lansdown Report and Financial Statements 2021