UK Film Studios Put Property Tax Bombshell On Culture Secretary’s Radar As Sunset Studios Pauses $900M British Expansion Amid Uncertainty
07.07.2023 - 13:49
/ deadline.com
EXCLUSIVE: Some of the UK’s top film and TV studios have raised concerns with Culture Secretary Lucy Frazer over a property tax bombshell that has this week put the breaks on Sunset Studios’ major expansion into the British market.
Deadline understands that Frazer has held talks with industry representatives about potentially eyewatering increases in business rates. Sources said she is keen to avoid damaging Britain’s world-leading production facilities.
The Treasury leads on tax matters, so it would ultimately be for Chancellor Jeremy Hunt to intervene, but Frazer could be an important advocate for a rethink. Hunt is a former Culture Secretary himself and has championed the UK’s creative industries.
Political interest in the issue comes as Sunset Studios Waltham Cross, a £700M ($900M) studio development in Hertfordshire, has been paused amid uncertainty over the property taxes. The development is an expansion of Sunset’s facility in California, which has housed shoots including Oscar-winner La La Land.
Deadline understands that Blackstone and Hudson Pacific, which own Sunset Studios, still plan to build at Waltham Cross but are holding back until there is greater clarity over the property tax concerns. Stubborn inflation in the UK has also been a factor in the decision to halt diggers.
Construction was due to begin imminently and it is not clear how long the project will be delayed. Construction Enquirer cited sources saying it could be 2024 before work begins. Blackstone and Hudson Pacific declined to comment.
In April, the UK’s Valuation Office Agency (VOA) updated UK studios’ “rateable values,” an assessment of the annual amount a property would rent for if it were available on the open market.
Rateable values
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