Narrowly rejected Elstree plan for 10 soundstages moves back into focus as new government seems more willing to build on green belt

TV company 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.

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