A £2.2 billion boost in defence spending will directly benefit Hampshire according to the Chamber of Commerce.

Ross McNally, chief executive and executive chairman of Hampshire Chamber of Commerce, said the Chancellor's spring statement is set to enhance the county's strengths in manufacturing, technology, and engineering.

He added: "We are central to the UK's defence sector and so it was great to hear Rachel Reeves' specific commitment to regenerate and secure the future of Portsmouth Naval Base.

"Similarly, we welcome her announcement of more investment in export finance to enable our defence contractors to do more in global markets."

Mr McNally added that easing procurement rules for smaller firms to land defence contracts will further help Hampshire's growth.

However, Mr McNally warned the government needs to act quickly to combine capital investment and industrial strategy to fuel growth.

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He said: "Many businesses had their confidence knocked badly by the autumn 2024 budget and the imminent cost pressures that will flow from that as early as April."

The business leader also called on the government to support Local Skills Improvement Plans (LSIPs) for Hampshire to ensure workplaces can find the talent they need and young people can progress their career development.

Mr McNally said: "To strengthen this activity, we call on ministers to champion employer-led engagement, extend investment in LSIPs, and bridge the gap between education and work.

"Businesses are innovative and will always seek markets where they can sell their advantage, quality of service and added value, but we need the government to truly deliver on its strategy for growth so we can restore the confidence to invest in the skills of our people, seek out and exploit market opportunities and achieve prosperity."

He added the business community in Hampshire is ready to work with the government to ensure the county's manufacturing, defence, and engineering sectors remain central to modern industrial strategy.