Perth and Kinross Council (PKC), Dundee City Council and Angus Council have committed to funding an external review of Tayside Contracts.
The news emerged as PKC agreed to give £1.1 million from its earmarked reserves to Tayside Contracts which provides it with cleaning, construction, catering and training services.
Wage increases, lower than expected school meal uptake, court ruling costs and rising inflation have all created a financial pressure on the commercial and operating arm for all three Tayside councils.
