Richmond and Kingston boroughs will bid for a cash injection worth up to £2m to develop a new “arms length company” dealing with children.

The recommendation was made at the first public Achieving for Children joint committee on Wednesday, which was attended by both borough chief executives at the Guildhall in Kingston.

But with just two weeks to go for the Department for Communities and Local Government bids to be in, it was admitted that the group had left it “rather late” and a lesser bid would be more realistic.

Gillian Norton, chief executive of Richmond Council, said: “We have really left it rather late and that is the honest truth. At this late stage we will do our best.”

Lord True, leader of Richmond Council, said the ambition to expand the borough services across London to help children in other areas should be included in the business plan.

But leader of Kingston Council and meeting chairman Councillor Liz Green said: “We have to stabilise what we have. I think we do need to have ambition to expand further in other boroughs but I think that’s slightly further in the future.”

A business plan which is being drawn up by contractors will be submitted for the Transformation Challenge award by July 13.

The next Achieving for Children joint committee will sit in September.