A BATTLE to stop the sell-off of Plymouth's council-owned bus company intensified today with the launch of a new campaign.

Labour Party activists were due to hold a protest in the city as opposition to the council's plans grew. The council has said it is looking at releasing some or all of its shares in Citybus, and both First Devon and Cornwall and Taxifast boss John Preece have expressed interest in acquiring the company.

The council's Cabinet will meet on Tuesday to discuss the sell-off proposals. It stresses that no decision has been taken.

But Unite, the trade union giant, said any move to sell Citybus was 'an insult' and 'nonsense', claiming it would lead to job losses.

Residents' leaders and other local politicians voiced strong opposition last night, and one Citybus employee has set up a 'Save Plymouth Citybus' profile on Facebook.

Tudor Evans, the Labour group leader on the council who is organising today's protest, said: "The bus company helps to control the price of fares in Plymouth. Cities that don't have a council-owned bus company have all seen their fares rise much higher than they are here. Pensioners will continue to travel for free, but everyone else will see fares rise. The council will also lose its dividend from Citybus profits, so council tax will rise."

Unite said the sale could mean a reduction in services.

"Citybus has been run successfully on a commercial basis for the past 25 years with no other financial help," said Unite regional officer Clayton Roberts.

"This is an insult to the workforce and management who have all worked extremely hard to make Citybus the commercial success it is today. We're bewildered as to why Plymouth City Council are willing to sell off such an asset.

"This decision is political nonsense and selling this asset in the middle of a recession doesn't make fiscal sense. The council can't simply let it go to pay off debts."

Mr Evans said: "The Conservatives promised not to sell Citybus during the 2007 city council election campaign. It's yet another letdown for people who voted Tory in good faith. It's selling the family silver – on wheels."

He said the council Cabinet would agree next week to spend up to £940,000 of public money to privatise the company.

City finance chief Cllr Ian Bowyer said the money would have to be spent only if a sale went ahead.

"This organisation cannot change its structure without incurring some costs," he said.

Meanwhile, a Citybus employee has started an online campaign to stop the sale. Robbie Aitken has set up a 'Save Plymouth Citybus' group on his Facebook account.

"You could see bus fares and costs in general rise," Mr Aitken said. "The public have got to stop this happening before you see your services go very fast indeed."

In Plymstock a community leader has warned Plymouth people of the dangers of allowing the sale.

Gloria Wenmen, chair of the PACT committee in Goosewell, said her area, where the buses were operated by First, had a worse service than the rest of the city.

"The elderly people here have lost their independence, and we are seeing many residents in their eighties being forced to drive cars again," she said. "It's scary."

South West Devon Liberal Democrat leader Stephen Kearney said: "The people of Plymouth should stand up and tell the council that the greed has got to stop."

Council leader Vivien Pengelly told The Herald this week: "Plymouth Citybus will not be sold unless a sensible offer is put forward.

"This process will simply see us testing the market to see what it's worth. We're prepared to spark controversial debates if it means the people of Plymouth will benefit."

She said no decision had been made on the company's future.