Kingston Council has blocked a Liberal Democrat motion calling for Councillor Kevin Davis to resign as council leader or quit his job at the communications company he co-founded.

The party had wanted to ask Coun Davis to either step down as leader or resign as chief operating officer of Cratus Communications, severing all links with the company, at next week’s full council meeting.

The motion, called Time to Choose, said: “Since May 2014, the Liberal Democrat Group has openly challenged the potential conflict of interest for the Leader of the Council who was Co Founder and remains employed as Chief Operating Officer of a public affairs company.

"Cratus Communications gives political advice to clients/developers on how to get a planning permission through council committees.

"Local people are now raising these same concerns regarding the leader being a lobbyist for developers, their perception being that he is not working for the best interests of the borough."

The motion did not specifically accuse Coun Davis of using his council position to help clients of Cratus, nor offer any evidence of such.

But in a reply made public by the Lib Dems, Andrew Bessant, head of corporate governance at Kingston Council, said he had "some concerns" about publishing the motion, citing a possible defamation claim from Cratus.

He said: "The implication from the wording of the motion (though this may not have been intended) is that Cratus is somehow involved in manipulating council decision making processes for its own ends, and those of its clients."

He added the pre general election period was also a concern.

But Liberal Democrat Coun Liz Green, leader of the opposition, said: "We have been silenced from raising legitimate concerns on perception by residents.

"We, at no point, have said that Cratus have done anything wrong. It is how being leader of a council with a growth agenda and owning a lobbying company could be perceived by residents."

Before Coun Davis was elected in May 2014, Cratus worked on several high-profile planning applications in the borough.

Previous clients have included CNM Estates, Where Cratus helped present plans for the old Gala Bingo hall, and Amro, the company behind the student flats at 1, Penryhn Road.

It also worked with Hydro Properties and Cascina during the companies bid to build a £30m floating homes scheme on the Seething Wells filter beds in Surbiton.

When Coun Davis became leader last year he told the Surrey Comet his company would no longer take any PR clients in Kingston to avoid conflicts of interest.

Coun Davis said: "The Lib Dems have clearly decided that my effectiveness as leader of the council is a political concern for them and that this can be can be best undermined by cheap political slurs and allegations without foundation.

“As they confirm in their website posting I have 'done nothing wrong' so what is their problem?

“I despair of politics when it sinks to such childish accusations. I am working hard for the good of this wonderful borough, the Lib Dems seem to prefer working for their own political self interest during a general election campaign."

Figures submitted by Cratus last week showed the company had a net deficit of £66,641 from the period February 2013 to January 31, 2014.