ITV has failed to meet regulatory targets for the number of programmes it makes outside London, placing it a risk of being fined for breaching the rules.

Communications regulator Ofcom said that the commercial broadcaster missed a 50 per cent target for production outside the M25 in 2007 and, after re-examining the data, in 2006.

ITV1 spent only 44 per cent of its production budget outside London in 2007, and 46 per cent in 2006, according to the revised data, which was re-examined after a challenge from PACT, the independent producers' lobby group.

Complex rules mean that it is not enough to shoot a production such as Doc Martin or Kingdom outside London; to qualify as a regional production the programme needs to use regional production crews and be made from a base outside the capital.

The broadcaster said it would take steps to meet the quota in 2008. "ITV is committed to a diversity of production," a spokesman said.

Ofcom said that it "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." Officials said that a fine was one sanction available.

ITV was fined £5.7 million earlier this month for a series of phone-in scandals on programmes such as Ant & Dec's Saturday Night Takeaway, and faces further sanction over the 2005 British Comedy Awards where it is believed that an award made to Ant and Dec should have gone to Catherine Tate.

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 exceeded its quota by 3%.

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