A boost to spending in the defence sector will benefit Hampshire companies, the Prime Minister has said - as he defended a rise in National Insurance contributions.

Sir Keir Starmer was speaking to the Daily Echo at a careers fair in Downing Street for small and medium enterprises (SMEs) as he promised to boost their access to the defence supply chain.

The Prime Minister said the latest move to increase the spending with these businesses will provide “certainty for years to come”.

Among those set to benefit are GW Martin in Eastleigh, SMC Group in Chandler’s Ford, and Saab, a Swedish company with a base in Fareham.

Sir Keir and Defence Secretary John Healey met with employees from the companies at a careers fair hosted at Downing Street on Monday.

It follows the announcement that defence spending would be increased to 2.5 per cent of GDP by 2027.

However, the wider business community has raised concerns about the rise in National Insurance contributions set to come in from April.

Quizzed by the Daily Echo at Downing street yesterday, Sir Keir said choices “must be made to stabilise the economy”.

“We did pick up a £22billion black hole”, he said, adding: “But because we made the choices we did, we can have the defence spending, and that is the best way to support businesses, with good jobs and good skills.

“That is what thriving businesses want.”

READ MORE: Hampshire defence firm 'encouraged' by pledge to boost spending 

Sir Keir said no one at the careers fair discussed the increase with him, and they know that the increased spending will “drive business forward”.

He said: “This gives them certainty and they know their orders are going to be filled down the line.

“The increase is sustained, so therefore for small businesses in Hampshire and elsewhere, the certainty is what they need for years to come, knowing they have the work supply they need and that has been well received.”

Stuart Yalden, managing director of GW Martin, was among industry leaders at Monday's event.

He said: "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."