Contractor ISG, which signed a pre-construction services agreement to build the vast film studio complex late last year, is now standing down its supply chain.

A supplier told the Enquirer: “We’ve been waiting around to confirm start and schedule dates and now have received notification from ISG that everything is on hold.

“It’s a real set back because the project was getting close to start.”

Blackstone and Hudson Pacific, which owns Sunset Studios, bought the 90-acre site, located in Broxbourne, for its first expansion of filming and production facilities outside of the US.

The delay could take the project start into next year according to suppliers although no official statement has been issued on the new schedule.

It is understood the project is being reviewed in the light of cost inflation and rising interest rates.

The 2m sq ft studio complex was originally conceived as fast-track two-year construction programme requiring concurrent building of four main hubs, comprising 21 sound stages and nine workshops as well as ancillary buildings.

Groundworks contractor Erith has prepared and levelled the site. Main construction was expected to start earlier in the Spring.

A copy of an email from ISG to subcontractors seen by the Enquirer said: “There will be a delay on commencement of work on site at Sunset Studio’s Waltham Cross project as our customer responds to market conditions both domestically and globally.

“We are in regular dialogue with the team behind this keynote regional development and recognise their commitment to bringing hi-end film and TV production facilities to the area.

“We will provide an update as soon as we have greater clarity over programme on a revised programme schedule.”

Both ISG and Blackstone were contacted for comment.