Allowing for replacement of 331,854 feet of existing facilities, there will be a net increase of 504,616 sf upon completion. When development is done--in 10 years time--Shepperton Studios will span 1.3 million feet.

Pinewood, the sister studio in Buckinghamshire, will also embark on a revamp, having received local council permission recently. There is, however, speculation in the property industry that Pinewood Shepperton may seek to bring on board a joint-venture partner to develop the facilities given the uncertain funding environment for the British film industry.

The company issued two profit warnings this year reflecting doubts over the future of government tax policy for filmmakers, a significant funding mechanism for British producers. In that environment at least one Hollywood production has been forced to postpone shooting.

Some of that uncertainty lifted this month after the government published proposals for a system that will replace the existing code with a tax credit. Film projects will have to pass a "cultural test" to determine whether they are "British" enough to qualify for tax relief.

Ivan Dunleavy, chief executive of Pinewood Shepperton, says the planning-permission approval would help to ensure that both studios remained market-leading facilities. The company declined to comment on speculation about joint venture partners.