A new banking hub is to launch in a coastal town blighted by closures - despite the idea previously being ruled out.

LINK, the UK’s cash access network, confirmed today that Sheerness is in line for the initiative, which will provide essential services such as cash deposits, withdrawals, and bill payments.

The decision follows a public outcry after the announcement that the town’s TSB was to close later this year, leaving the Island’s 40,000 residents with just Nationwide.

Previous closures by HSBC, Barclays, Halifax, and NatWest already severely limited local banking options.

In response, resident Gerry Cunningham started a petition that gathered nearly 5,000 signatures, urging TSB to rethink its plans.

Last month, the Financial Conduct Authority (FCA) announced there would be changes to the way bank-deprived communities are assessed.

But during a review of its services, LINK had recommended the town was not eligible for a banking hub due to the fact it would still have Nationwide, and that some facilities would still be offered at its Post Offices and ATMs.

It insisted improved cash deposit services were put in place before the TSB shut, but this week the organisation upgraded that recommendation to a full banking hub.

A search is now underway for a venue, but it is expected to open within 12 months and will be operated by Post Office staff.

It will also offer private rooms for more complex banking needs, with staff available on a rotating basis.

LINK’s deputy chief executive, Adrian Roberts, said: “We’re pleased to recommend this new hub in Sheerness. Access to cash remains vital for millions of people across the country.”

Councillor Mike Whiting (Ind) and MP Kevin McKenna (Lab) had called for urgent action for improved financial services for the Island, noting that the area’s post offices were inadequate to meet local demand.

Mr McKenna said of the announcement: "This is good news. I am delighted to hear it and it is exactly what we needed.

"It is only one step closer to regenerating the high street, but was a step we needed and one we have been pushing for as we said in our manifesto."

Banks will work from the facility on a rota, working from the hub on specific days meaning clients will need to check in advance what days their service will be in the office.

The banks involved are Bank of Ireland (UK), Barclays, Danske, HSBC, Lloyds, NatWest, Santander, TSB and Virgin Money.

LINK have recommended 163 new hubs with 81 currently up and running across the UK.