A direct rail link between the Sussex coast and London has been saved.
Trains from Hastings to Gatwick and Victoria were under threat because late-running services were clogging the busy Brighton to London line.
The Department of Transport was going to cancel the service next May and reduce the number of trains from Hastings to Eastbourne from three an hour to just two.
But the Government has backed down following pressure from commuters and Labour and Conservative MPs in Hastings and Bexhill. MPs said the cuts would cause problems for disabled people, who would have to change trains, and be a setback for regeneration in the two towns.
Hastings Borough Council leader Jeremy Birch said: "This is an important decision for Hastings.
"The idea of a town with such potential as Hastings having no direct link with the major airport was not on. I am pleased the Department of Transport has listened to the council's voice, which I know very much represented local opinion."
The Department informed Hastings MP Michael Foster that the reasons for the changes were no longer valid and it no longer required Southern Railway to withdraw the service.
He said: "Since the new trains have been in place there have been very few late runnings and I am delighted that the Government has therefore agreed that in those changed circumstances, the rationale is to continue the service."
Graham Gubby, leader of Rother District Council, said: "This is brilliant news and shows what can be done when political leaders and the community across the two towns stand together.
"I'm proud of the Bexhill Rail Action group, which was set up to lobby on this.
"Losing this link would have been a disaster economically and I'm glad the Government has had the common sense to remove this threat."
Campaigners won a partial victory earlier this year when the Government agreed to retain rush-hour services from Hastings to Victoria. But there were to be no trains at night or for most of the day.
Sue Spice, from Bexhill Chamber of Commerce, said: "We have lobbied long and hard to keep this service, attending many meetings and even visiting the House of Commons.
"That direct link is vital to the town and we were in danger of becoming an outpost.
"Our road links are poor so the rail link was one of the few things we had going for us transport-wise.
"The prospect of losing it was a massive concern so we are absolutely delighted about this announcement."
A spokesman for Southern Rail said: "This was always a Department of Transport direction, not a decision by Southern Railway, and we look forward to formal confirmation."
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