Like many franchises within the ITV network, Scottish struggled through the late 1960s and early 1970s with the recession, increased transmitter rental fees, taxation on income (rather than profits), a decline in advertising revenue, and the costs of converting equipment for the launch of colour television. In 1970, the company made a loss of £39,000; a warning was given that regionalism would be abandoned, and a forced merger with Grampian Television would happen, unless the chancellor reduced the levy applied on advertising revenue.