The announcement, which affects 11 television stations, will see the total tender payments from them being cut from £363m this year to £292m next year.

Media Correspondent Nick Higham: "Most of the £30m windfall will go to ITV shareholders"

But the companies had been hoping for reductions of more than £100m in the annual licence fees they pay to the government.

The loss-making breakfast station GMTV has been offered the biggest cut - its annual payment could fall from £50.5m to £20m.

GMTV welcomed the £31m reduction and said it would invest in new programming.

"This is a sizeable reduction that will allow the company to trade at a consistent profit for the first time," its statement said.

Managing director Christopher Stoddart said: "The reduction in GMTV's licence fees will enable us to reinvigorate GMTV programming and reinforce our position with our audience and advertisers as breakfast television market leader."

Industry experts had expected United News & Media PLC, which owns the HTV, Meridian and Anglia stations, to emerge as the largest single beneficiary of the changes.

Meridian has been offered a £6m cut which would drop its fee to £58m a year.

But under the new terms, Anglia would have to pay £29m - just £500,000 less than it currently pays.

The company said the savings offered were at the low end of its expectations.

It said over the next two weeks it would reach a decision on Meridian and would put in another application for Anglia.

Menna Richards, managing director of HTV Wales, said the savings would benefit programmes, including comprehensive coverage of the National Assembly for Wales and a significant increase in drama output.

Carlton Communications PLC submitted each of its Carlton, Central and West Country licences for renewal.

The company said it was currently "minded to accept" the terms of renewal offered for its London and West Country franchises, but did not intend to accept the terms being offered for Central and was likely to reapply to the ITC later.

The ITC will grant more new licences in 2001

Carlton and Granada also each own 20% of GMTV, and analysts said all three companies are expected to benefit from the renewal of the licence by around £5m in 1999.

Scottish Media Group PLC has not applied for early renewal of its Grampian or Scottish TV licences, though it will benefit from the renewal of the licence for GMTV licence, in which it holds a 20% stake.

Ulster Television said the ITC offer meant it would have to pay more to renew its licence.

And tiny broadcaster Border TV decided to defer its application for licence renewal in the light of the ITC's increased reappraisal.

Chief executive Paul Corley said: "From our shareholders' point of view there would be little point in paying £400,000 a year when we can carry on operating on our existing licence fee of £60,000 per annum."

The companies have until 31 December to decide whether to accept the ITC's new terms.

The reductions in the licence fees are based on new competition that the independent companies face from cable and satellite channels.