Hard onthe heels of ScreenDaily.com's exclusive report that the next JamesBond film looks set to shoot in Prague comes more troubling news for thebeleaguered British production sector.

HarryPotter producerDavid Heyman has confirmed to ScreenDaily.com that it is not certainthat the fifth installment of the franchise - Harry Potter And TheOrder Of The Phoenix - willbe based in the UK.

"We areexploring all options to determine the best place in the world to make thefilm," he said.

Headded: "We are looking at the UK and other places all over the world."

All fourPotter films have shot in the UK to date, providing a huge financial andcreative boost to the country's production community.

However,two key financial concerns have prompted a review of where the film will shoot.

Firstly,the government's review of the Section 42 tax break has caused uncertainty onwhat proportion of the film's budget can be claimed via a sale and leasebackdeal.

Secondly,the strength of the pound versus the dollar means that the cost of shooting thefifth Potter film in the UK has risen by up to 20% compared to the firstthree films.

In theUK's favour is the depth of talent amongst the cast and crew that have workedat Leavesden Studios on the recent Potter films.

The fifthPotter film, to be directed by David Yates, is gearing up to shoot earlynext year.

Thechanging financial climate in the UK has already forced Paramount's $120msuperhero thriller Watchmen to abandon plans to shoot at PinewoodStudios.