Notes to the Accounts For the year ended 31 December 2007
23. Commitments
Operating lease commitments
At 31 December 2007 the Group was committed to make the following payments in respect of non-cancellable operating leases:
| Land and buildings | Other | |||
|---|---|---|---|---|
| 2007 £'000 |
2006 £'000 |
2007 £'000 |
2006 £'000 |
|
| Leases which expire: | ||||
| Within one year | 2,562 | 1,034 | 449 | 284 |
| Within two to five years | 29,411 | 25,280 | 7,526 | 4,645 |
| After five years | 57,980 | 53,088 | – | – |
| 89,953 | 79,402 | 7,975 | 4,929 | |
The Group leases various offices under non-cancellable operating lease agreements. The leases have varying terms, escalation clauses and renewal rights.
The Group also leases various plant and machinery under operating lease agreements. The Group is required to give a varying notice for the termination of these agreements.
Capital commitments
The Group had contractual capital commitments of £1.2m as at 31 December 2007 (2006: £0.6m) relating to property, plant and equipment. The Group had contractual capital commitments of £3.4m as at 31 December 2007 (2006: £0.2m) relating to computer software.
VAT group registration
As a result of group registration for VAT purposes, the Company is contingently liable for VAT liabilities arising in other companies within the VAT group which at 31 December 2007 amounted to £7.6m (2006: £6.3m).