Hobbit to break budget record

Peter Jackson will take charge of the most expensive film ever made when The Hobbit finally starts shooting in February 2011.

MGM and New Line are handing Jackson $500 million, which will buy a lot of second breakfasts.

It's the highest budget in movie history, at almost double the budget for the entire original Lord Of The Rings Trilogy ($281 million), beating the previous record holder - Pirates Of The Caribbean: At World's End - by $200 million.

But it does have to cover two films so, Pete, don't blow it all on genetically engineering a real dragon to play Smaug, okay?

What do you think he should spend the cash on? More fish for Gollum? Tell us below!