Channel 4 has announced its winter schedule along with a programme budget of �430m for 2003 - its highest so far.

The TV station has recently been hit by losses and is reportedly to announce up to 200 job cuts this week.

Channel 4 chief executive Mark Thompson said he was using the cutbacks to "transfer overheads to the screen" and deliver a "better, richer" service for viewers.

Thompson: Wants a "richer service"

Last week the channel revealed it was moving its long-running soap, Brookside, from prime-time to a Saturday afternoon daytime slot.

But on Tuesday it announced three new dramas for next year, including Shameless, the first series for Channel 4 by Clocking Off scriptwriter Paul Abbott, which follows the lives of two 15-year-old brothers and their sister in Manchester.

A two-part drama, Second Generation, will follow the experiences of two Asian immigrant families living in London, while Nurses will focus on a gang of four young women from Leeds who live, work and play together.

Among other new dramas will be 40, which stars Eddie Izzard and Hugo Speer and revolves around seven people whose lives become linked by their hidden secrets.

Reality shows

There will also be a number of new reality TV shows such as Wifeswap, in which 10 women swap families for 10 days.

The producers of Big Brother are to make another reality show, The Salon, following the fortunes of a real beauty salon equipped with microphones and cameras.

In an upbeat announcement, the channel said it had recently been enjoying its highest peak-time ratings since launch, with a 9.8% share between 5pm and midnight.

Channel 4 is also predicting a 4% increase in advertising revenue in 2002, from �604m in 2001.

Favourites like Graham Norton will return

But Mr Thompson warned that Channel 4's ability to meet its remit to serve minority audiences could diminish with falling funds.

"Without access to public funding and without private shareholders to fall back on, Channel 4 can only generate additional investment by increasing its revenues or reducing its cost base," he said.

"Some jobs will therefore be lost to deliver this fresh investment, but every penny we can transfer from overhead to the screen means a better, richer service to our viewers."

Overall there has been a general decline in Channel 4's viewing figures, with rival channel Five catching up and rivalling it in some key slots.

Five challenge

Earlier this month, Five had a ratings success with the heavily-trailed Michael Jackson's Face.

The show generated an audience of 3.6 million, more than four times the number the number who tuned in to Channel 4's documentary College Girls about Oxford students.

And Channel 4's troubled breakfast show Rise is now being easily overhauled by Five's revamped Noddy cartoon Make Way For Noddy.

After coming very close to overtaking Channel 4's audience share last week, Five wants to make permanent gains.

Channel 4's share in the year to date is 10.1%, no change from last year, but Five's has risen from 5.7% a year ago to 6.3% now.