BUS 'wars' are being predicted in Plymouth after First was given permission to run four new services from this Autumn.

The firm has not revealed the routes but the Western Area Traffic Commissioner described them as 'city centre circular routes' which will run from October 11.

Transport industry insiders are speculating the routes will cover Ernesettle, Southway, Estover and Plympton.

Plymouth City Council said the threat of competition was one reason it is considering selling off its majority shareholding in Citybus.

This comes as the Office of Fair Trading called for more competition in Plymouth and nationally to reduce fares and improve services.

John Preece, chairman of Taxifast which is spearheading a company hoping to buy Citybus, said First's move was the opening salvo in a 'bus war'.

He is calling for the city council to go on the offensive and urge Citybus to run services in direct competition to First's Plymstock schedule.

He also wants the Office of Fair Trading to step in because he fears the First application could unbalance potential bidders, should the city council decide to off-load its bus firm.

Taxifast has already lodged an objection to the First expansion with the OFT.

First Devon and Cornwall's managing director Marc Reddy said: "We can confirm we have registered a number of new services as part of a planned extension of the Ugobus network.

"Since it was unveiled in April 2008 the Ugobus network has gone from strength to strength and the Honicknowle service, launched last autumn, has proved to be successful.

"It is against this backdrop that further extensions are planned."

He added: "Details of the new services will be revealed in the coming weeks."

He remained tight-lipped on whether his firm would also bid for Citybus, but did say: "We are always looking for opportunities to develop and expand our business."

The city council has valued Citybus "well in excess of £10million", and is inviting bids in order to discover its true market value. A city council spokeswoman said First's new routes won't become active until after the council has received initial offers from interested bidders.

"There is always the chance that any competing bus operator can register on routes of established bus operators at any time – this is no different in Plymouth," she said. "This was one of the major reasons the council decided to consider the future ownership of Citybus, as competition in the transport market is increasing. Route competition has always been a consideration for Citybus, as it is for all bus companies and as it would continue to be for any new provider. This possibility would be factored into any valuation. It is presumptuous to say that this will affect interest in the company or the price bidders are prepared to pay."

Mr Preece is fronting a consortium of four Plymouth firms: his own Taxifast, its associated Taxibank brokerage operation, bus operator Target Travel and property firm London and Westcountry Estates. He said First's application was an "attack" on Citybus and said: "As would-be purchasers we are very concerned. It will depress the price of Citybus tremendously. Whoever buys it will go straight into a bus war."

A spokeswoman for the Western Area Traffic Commissioner said First submitted a 56-day notice to run the services and they had been accepted.