A Kent politician has backed plans for a “people’s bank” to provide services to those disillusioned by high street lenders.

Roger Gale, the MP for North Thanet, is part of a coalition of other politicians, trade unions, business leaders and pressure groups calling for a new Post Bank.

The campaigners said the organisation would provide a “trusted and honest” bank, help secure the future of the Royal Mail and create around 11,000 new jobs.

Mr Gale said: “Post Office branches will carry on closing unless and until we manage to turn the tide and reinvent the reasons why they’re there.

“What we’re really talking about is getting back to banking. Banks started locally; the managers used to live locally, they knew local customers and had the courage to back small businesses.”

Under the plans, 11,500 Post Office branches around the country would be turned into mini-banks with the power to run basic bank accounts and lend money to small businesses.

The Post Office already provides a range of financial services, including car insurance, buildings and contents insurance and several savings and investment products.

Mr Gale added: “Several million people don’t have a bank account. These include the elderly, the socially deprived or excluded, and others who don’t feel confident dealing with a major bank.

“But all of these are happy to walk through the door of their local Post Office.”

John Wright, national chairman of the Federation of Small Businesses, said that almost 50 per cent of people visit their local shop a couple of times every week.

Billy Hayes, general secretary of the Communication Workers Union, added: “The Post Bank will appeal to many in this time of economic uncertainty. It will be a true people’s bank, meeting the needs of society and business alike.”