The company running children’s services in Kingston and Richmond overspent by £1.5m last year, despite a business plan stating it would bring in £6m of extra business by commissioning out its services to other councils.

Community interest company Achieving for Children (AfC) also faces having to make £4m worth of cuts from its £107m budget over the next two years.

Despite the huge overspend and looming budget cuts, councillors said they were “impressed” with AfC’s performance during Kingston Council’s adult and children’s committee on Wednesday night.

Councillor Julie Pickering said: “AfC are in a tough position, but so is everyone.

“We have to make a 40 per cent cut in services across the board.

“As much as [AfC] are trying to make savings the amount we need to spend is rising.

“This is AfC’s first year and it seems to be streamlining services and it is starting to expand its services to make money. It is tough for everyone at the moment.”

The company, which launched in April 2014, is funded equally by Kingston and Richmond councils.

However, the account reports show that more money is being spent onservices in Richmond.

Chairman of the committee Councillor Eric Humphrey said: “I have noticed that more money seems to be being spent in Richmond.

“They are, of course, a bigger borough, but we need to make sure we are getting a fair deal.”

Elizabeth Brandhill from AfC said: “The journey for AfC is an ongoing learning experience.

“We are constantly identifying some of the bureaucracies and [ways to save money].”

MP for Kingston and Surbiton James Berry said: “In the coming weeks I will be making sure Kingston taxpayers are getting a fair deal.”

The Comet has approached AfC – through the council that handles its press enquiries – since April to see AfC’s account report and ask how it planned to make cuts.

A number of requests have gone unanswered, including direct emails to AfC’s £150,000-a-year chief executive Nick Whitfield.

The company accounts were published on the Kingston Council website this week.

Kingston Liberal Democrat leader Liz Green said: “I am in support of AfC broadly.

“The fact they don’t answer press enquires may be more to do with the personalities involved.”