During 2001, CITV's budget was cut by 17% due to the advertising recession, CITV's controller Janie Grace publicly criticised Carlton and Granada Television, then the main controlling forces in the network, for underinvestment in ITV's children's service.[3] Grace went even further and complained to the regulator ITC. She make it clear CITV was unlikely to fulfil their range of programming commitments next year: she was also seeking ITC support for a radical change away from what she calls a sick, advertising-funded system. Her plan would have see the creation of CITV Ltd pulling in children's TV experts within ITV, and plus a commitment from the likes of Carlton and Granada allowing it to plough revenue from merchandising rights back into programmes. The plan would have seen a reduction in programmes made by independents and far more made by ITV companies, unfortunately the plan require backing from the office of fair trading, and a change in the law.[4] Further cuts took place again during 2002 which brought the total cutback to 25% of the overall budget (£30million less).[5] Despite the cut backs the ITC commented that citv had a "sustained an impressive schedule" were able to give "factual material a fresh look" and "continued to produce good dramas"[6] Just after CITV celebrated its 20th birthday in January 2003 Janie Grace resigned from the post just before Nigel Pickard was named as ITV's new Director of Programmes.[7][8] Nigel Pickard pledged to produce 80 mores hours of children's programming in 2003, against a target of 520 hours in 2002 and extend the range of programmes to include more factual and topical programmes and more mixed entertainment and drama,[9] which include a high profile show Boohbah. Once again Concerns about CITV and its current structure where highlighted by Angus Fletcher, president of Jim Henson Television Europe, and Anne Wood, founder of Ragdoll Productions, as CITV can only earn money from a currently unreliable advertising market. Unlike BBC Worldwide where the likes of Teletubbies, Tweenies and Bob the Builder have become a major money earns for the BBC.[7] Steven Andrew become the new ITV controller of children and youth. He oversaw the merger of Carlton and Granada's children's departments and started looking at benefits for a multichannel kids offering, with a new CITV channel. On-screen, various changes to the presentation team saw no less than eight additions and replacements in the space of four years. By September 2004, ITV plc announced the closure of its presentation and transmission facilities in Birmingham, signalling the end of CITV continuity from Central. Presentation was relocated to Granada in Manchester and all in-vision continuity was replaced by voice overs.
Further cuts back took place in 2005[10] added with the perceived rising costs of original production and the effects on advertising revenues following the ban by OFCOM on 'junk food' advertising within children's schedules from 2007[11][12] and increasing competition from CBBC and countless digital children's channels for new programmes (especially imported cartoons, typically from America). In the summer of 2006, ITV closedown its in-house children's production unit, as part of ITV's then on-going process of restructuring ITV Productions, and blaming the closure because of the competitive production environment, though ITV denied any intention of ditching its children's programming from its ITV schedule.[13] At the start of 2007, CITV's weekday afternoon strand on the main ITV network was axed after 24 years
http://en.wikipedia.org/wiki/CITV#Cut_backs_.282001_onwards.29
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