Answer: £109 million

**Calculation:** - Beginning net pension liability: £100 million - Add: Pension expense: £12 million - Add: Remeasurements: -£3 million (negative means reduction) - Ending net pension liability = £100 + £12 - £3 = £109 million **Explanation:** The net pension liability changes during the year due to: 1. **Pension expense** - increases the liability as it represents the cost of providing pension benefits 2. **Remeasurements** - represent actuarial gains/losses and changes in assumptions; a negative remeasurement (-£3 million) reduces the liability Note: The discount rate (5%) is provided but not needed for this calculation, as it would be used to calculate the present value of obligations rather than the year-over-year change.

Author: LeetQuiz Editorial Team