Pinewood, Warner and Sky are sounding the alarm over the threat the “studio tax” poses to Britain’s status as a competitor in Hollywood.

EXCLUSIVE: Pinewood, Warner Bros. Discovery (WBD) and Sky have sounded the alarm over a so-called British film studio tax which they say could torpedo Britain’s status as a rival to Hollywood.

The companies have raised concerns about “extreme” tariff increases for recording studio equipment companies, arguing that Britain’s competitiveness and the development of new studios could “collapse” if the government does nothing.

Their concerns were expressed in written evidence to the Culture, Media and Sport Committee’s inquiry into the state of Britain’s high-end film and television industry. Deadline has been following the battle over business rates since February, and the studios’ interventions signal an escalation of tensions over the issue.

Sky, which recently opened the doors to Sky Studios Elstree with NBCUniversal, said the changes threatened the “profitability and therefore viability of studios across England and Wales”.

The Comcast-owned company said, “If these new rates are implemented, the construction of new production studios and the expansion of existing studios will become financially unviable, negatively affecting productions large and small.”

It added: “There is an extreme disconnect between changes in rates for film studios and all other industries, which has the potential to negatively impact a successful and globally competitive sector.”

Shooting takes place in the Pinewood Studios, among others Deadpool 3The report said increases in business rates were “likely to reduce the level of new development”. WBD, which Warner Bros. Studios Leavesden operates, where Wonka was filmed, said it was a “significant issue affecting the UK’s competitiveness”.

The British Film Commission, which coordinates the industry’s lobbying against the price rises, said in its submission to Parliament’s Culture, Media and Sport Committee that the changes were “undesirable”.

“The BFC is currently working with the studio sector, government and the Valuation Office Agency to address this matter, with the aim of ensuring that a mutually acceptable agreement is reached as quickly as possible,” the report said.

The increase in business rates follows the Valuation Office Agency’s update of the “rateable values” of UK studios, an estimate of the annual amount a property would rent for if it were available on the open market.

Taxable values ​​are used to calculate business tax, a tax on non-domestic property. The higher the taxable value, the higher the trade tax rate.

Pinewood’s rateable value quadrupled to 16.2 million pounds ($20.5 million) on April 1. Warner Bros. The rateable value of the Leavesden studios increased fivefold to £25.3m.

A spokesperson for the Valuation Office Agency said: “The new rateable value of a film studio will reflect changes in rental values ​​between 2015 and 2021.” Since the last revaluation in 2015, the growth of streaming services has led to an increase in rental values.

“We are working closely with industry representatives to determine if there are grounds for a change in taxable values. All parties are doing everything in their power to resolve the situation as quickly as possible.”