Sky is likely to appeal against a planning decision blocking the expansion of its film studios, amid signs that the Labour government is willing to allow building on the green belt to prioritise economic growth. Sky Studios Elstree already has a new state-of-the art film and TV studio in Hertfordshire with 12 sound stages across 11 hectares (27.5 acres) , producing movies including Paddington in Peru and a version of the hit musical Wicked starring Ariana Grande and Cynthia Erivo. The company had proposed to expand its operations with a new development, Sky Studios Elstree North, with 10 new sound stages, which could create 2,000 new jobs and enable an extra £2bn of production investment over the first five years of operation. It submitted a planning application to Hertsmere borough council in 2022 and in March the council narrowly rejected it. The media company now plans to appeal and hopes that Labour is looking more favourably on new film studio developments than the previous Conservative government as part of its backing for the UK’s creative industries, which are largely clustered in the south-east. Sky Studios Elstree said: “Having taken the time to assess the plans and engage with the local council and community, it is our intention to submit an appeal.” Hertsmere borough council said it had yet to receive a formal appeal but it has “had notification of the applicant’s intention to submit an appeal”. Last week the deputy prime minister, Angela Rayner, called in a rejected planning application for a proposed £750m development at Marlow film studios that would create 4,000 jobs. Buckinghamshire council had turned down the application in May, citing concerns about the impact on the road network and use of the green belt. The Marlow project has received high-profile backing from film-makers including Sam Mendes and James Cameron. The site would have 44,000 sq metres (470,000 sq ft) of new sound stages. Ministers will now have the final say on whether the studio development is approved. Rayner has spoken of the need to shake up the planning system. A second film studio development is also hoping to overturn a planning decision on the green belt. Holyport Studios, a £100m scheme proposed by Greystoke Land, would provide 20,900 sq metres of soundstage space. The Royal Borough of Windsor and Maidenhead rejected the plans in March. The independent Planning Inspectorate, which deals with applications and appeals in England, is scheduled to hold an inquiry into the Holyport plans next month. Film studio space in the UK has nearly doubled in recent three years, from 297,000 sq metres in 2019 to 492,000 sq metres in 2022-23, according to UK government figures, and at the current rate of expansion Britain will be second only to Hollywood globally by the end of 2025.