12:53pm Thursday 22nd May 2008
ITV has failed to meet quotas for the number of programmes it makes outside London, Ofcom has said.
ITV1 should have spent at least 50% of its production budget on programmes made outside the M25, but fell "significantly below" that at 44% last year, the communications regulator said.
A separate audit revealed ITV1 also failed to meet the quota during 2006, spending 46% on programmes outside London.
Ofcom said it was taking the issue "very seriously".
It said in a statement: "Ofcom believes it is important that broadcasters meet the minimum requirements set out in their licences.
"ITV's failure to meet the value element of its out-of-London quota is a serious matter, and one which is the subject of further consideration by Ofcom with a view to regulatory action."
The Communications Act requires networks to spend a set amount of their production budget outside London. The quota applies to all network programming including dramas and comedies but excluding news.
It is thought to be the first time a network has fallen short of the quotas.
Ofcom said the BBC spent 3% more than its quota in 2007, Channel 4 spent 5% more and Five extended its quota by 3%.
The failure could mean more fines for ITV1 following a series of premium rate phone-in scandals.