ITV1 is to boost its programme budget to �825 for the calendar year 2003 - a rise of some 6% on 2002 - to counter the ratings threat from the BBC.

Last year audiences to the commercial TV network fell behind those of its main rival, BBC One, for the first time.

The then director of ITV channels, David Liddiment, put the BBC's success down to increased licence fee income and a more market-driven approach to programming.

Granada's Charles Allen wants to attract advertisers

The new programmes budget - up from �775 in 2001 - is being unveiled by Charles Allen, the chairman of Granada at a conference in Barcelona on Wednesday.

The rise in spending is subject to endorsement from its fellow ITV licence holder Carlton Communications.

Despite the extra �50m for 2003, ITV1's budget will be about �200m less than that available to BBC One controller Lorraine Heggessey.

And BBC director general Greg Dyke has pledged further funds into BBC One programmes in the current financial year, taking the channel's annual budget over �1bn for the first time.

The new budget is seen as part of ITV's fightback after a period of declining advertising revenues and pressure on ratings.

Mr Allen is likely to tell Schroder Salomon Smith Barney conference in Barcelona that ITV is rebuilding its audience share - while advertising is recovering after a two-year depression.