The head of a manufacturing company in Eastleigh has said he is “encouraged” by the Prime Minister’s pledge to increase defence spending.

Accompanied by three apprentices, Stuart Yalden, managing director of GW Martin, was among industry leaders at a Number 10 Downing Street careers fair on Monday.

Speaking at the reception, Sir Keir Starmer unveiled a new “hub” for small and medium-sized enterprises (SMEs). It follows last week's announcement that defence spending will be increased to 2.5 per cent of GDP by 2027.

Mr Yalden said he is pleased by the plans put forward by Government and hopes it will bring more growth and jobs to Eastleigh.

He said the third-generation family business has an advantage due to it being a smaller company.

Speaking to the Echo at the event, Mr Yalden said: “We employ around 45 people, so we are flexible and agile because we are smaller."

Mr Yalden added: “I am encouraged by what the Prime Minister Keir Starmer has said, and this sector is a clear focus when it comes to spending taxpayers’ money.

“At GW Martin, we are in a state of readiness, and we are looking to employ more people, and at how we can support the country in what is a challenging time.”

However, the rise in National Insurance contributions announced previously has been a concern Mr Yalden said.

“The rise will affect our business, and it has gone straight to the bottom line, but the money has to come from somewhere”, he said.

Mr Yalden was accompanied by three apprentices who said working at the precision manufacturer was great for growth and development.

This is something Sir Keir is keen to continue, as he hailed the defence sector as offering “the next generation of good, secure, well-paid jobs”.

SMC Group based in Chandler's Ford and Saab, which has a facility in Fareham, were also at the careers fair, as was PBM Manufacturing in Andover.

Sir Keir and Defence Secretary John Healey met SMEs in the defence sector, apprentices and students.

The Prime Minister told the Number 10 event that support will increase “investment in small firms across the whole of the United Kingdom”.

He added: “For those of you that are thinking about a career in defence, in this industry, I hope the students feel inspired by what they see today, the opportunities before them and the possibilities for their own future.

“Because this isn’t just about security for Britain, it’s about security for working people as well.

“The next generation of good, secure, well-paid jobs and the pride and purpose of knowing your work keeps the nation safe.”