ITV may have to review its public service broadcasting role after new figures show that economic downturn has impacted on advertising revenues.

This is the view of executive chairman Michael Grade, who said that government regulation was having an adverse impact on its business.

ITV saw profits decline by 28 per cent fall in the first six months of the year, although the broadcaster still posted a respectable£91 million.

He said that despite some "dire predictions", television advertising held up "relatively well" over the first half of the year.

The figures also confirmed that ITV had spent £29 million more on its sporting coverage than last year. This turned out to be a good move as ten million people tuned in for the Uefa Champions League final between Manchester United and Chelsea.

On the issue of job cuts, Mr Grade told the Manchester Evening News: "We are committed to production in Manchester - it is home to Britain's most successful television series [Coronation Street]."

ITV employs around 6,000 people, with 1,000 based in Manchester. The regional department is expected to join the BBC at Salford Quays in the near future.