Cleaning, catering, grounds and building maintenance by Jarvis had been "nowhere near up to scratch", Brighton and Hove City Council said.

The authority demanded immediate improvements from the firm, which won the 25-year contract two years ago.

Jarvis said the chief executive responsible had now stepped down.

They have to improve their performance and do it quickly Brighton and Hove City Council spokesman

The company, which was awarded the schools contract under the Private Finance Initiative deal, has already appointed a successor for its accommodation services division.

A council spokesman said on Friday: "We met with Jarvis this morning and made it very clear to them that their performance in a number of areas is unacceptable, particularly within their facilities management services.

"Immediate improvements are required and we very much hope that their change of management will help bring these about."

The authority is due to meet with Jarvis in two months to review the situation.

"They have to improve their performance and do it quickly," the council spokesman said.

The rail division of Jarvis last year withdrew from track maintenance contracts following its involvement in Potters Bar and other rail incidents.