Having spent £91,327,000 of its planned net budget of £187,090,000 in the first six months of the financial year, Pembrokeshire County Council is hitting its financial targets, the cabinet was told yesterday (Monday).

But significant increases in fuel costs, which in a full year will be around £2m will create heavy costs pressures in the second half of the year up to March.

"These additional costs will have to be managed within existing resources as far as possible," said director of finance Mark Lewis in his budget monitoring report.

Up the end of September 59% of council tax had been collected, a similar level to last year, and 63.9% of business rates compared with 64.3% last year.

Rent arrears stood at £547,000 compared with £543,000 last year. Borrowing stood at £138,084,000 slightly higher than last year, while investments totalled £89,760,000.

Cabinet was also told that Pembrokeshire County Council has also raised over £2m from the disposal of surplus land and buildings this year.

Monday's Cabinet meeting was told that the Corn Store at Pembroke had been sold to Vintage Interiors Ltd for £365,000; St Teilo's School, Tenby, to the Diocese of Menevia for £1.2m; land off Hakin Drive to Accommodate Ltd for £130,000; 25, Charles Street, Milford Haven, to Accommodate Ltd for £110,000 and land at Rectory Avenue, Hakin, to Pembrokeshire Housing Association for £225,000.

Leader John Davies said he had received letters from concerned electors regarding investments, none of them in banks which had experienced difficulties. "They said 'Thank God Pembrokeshire County Council has been prudent.'"