In June 1969, talks began between Yorkshire and Anglia about achieving a cost-cutting exercise by sharing equipment and facilities. Neither company planned joint productions or a merger. The decision to form an association was purely down to the costs of the increased levy on the companies' advertising revenue by the government, and the cost of colour TV. The ITA stated there was no reason why the companies should not have talks about sensible economies that could be made, but would examine all details before any association were to be implemented. In January 1970, a warning was given that regionalism would be abandoned and a forced merger with Anglia Television would happen unless the chancellor reduced the levy applied on advertising revenues, which was also not helped by the high cost with colour television and the introduction of UHF, which the government agreed to a few months later.