Lib Dem Danny Alexander could be given a peerage in a bid to keep him in his Treasury post in a second Coalition , it emerged today . The high-flyer and close ally of Nick Clegg , who has won praise as George Osborne ’ s second-in-command , is on course to lose his seat to the Scottish nationalists . He would be one of the highest-profile casualties of the SNP surge which is set to take the seats of many of Scotland 40 Labour and 11 Lib Dem MPs on May 7 . Scroll down for video . Lib Dem Danny Alexander could be given a peerage in a bid to keep him in his Treasury post in a second Coalition . But one plan said to be under consideration by the party , is to keep the 42-year-old MP Inverness MP as Chief Secretary to the Treasury by giving him a lifetime sinecure in the House of Lords . Other party stalwarts likely to be ennobled after the election are former leaders Charles Kennedy who may lose his seat of Ross , Skye and Lochaber , and Sir Menzies Campbell who is standing down . The Lib Dems believe in ultimately tearing up the current House of Lords and making it a fully elected chamber . Their interim plan is to cut the number of peers to 450 . However while they wait for support from other parties for Lords reform , they are likely to continue adding to the ranks of their 99 appointed and four hereditary Lib Dem peers . Nick Clegg , pictured in Portsmouth today , has claimed the Lib Dems would serve as the ‘ heart ’ of a Tory-led government , opposing welfare cuts , or the ‘ brains ’ of a Labour one – reining in borrowing . If made a peer , Mr Alexander could serve as a minister in a second coalition particularly with the Tories who he has worked closely with as a member of the ‘ quad ’ which approved coalition policy . According to party rules , a coalition with either the Tories or Labour would have to be voted on by Lib Dem members , who may oppose it , in the belief that the party needs a spell in opposition . But schools minister David Laws made clear last week that many of the frontbench are keen for another term , saying the party still have an ‘ appetite for power ’ . A spokesman for Mr Alexander refused to rule out that he would ever take a peerage , but said no such plans were under consideration and that he believed he would retain his seat . The Treasury chief , who is said to have ambitions for the party leadership , is likely to have no difficulty finding a role in the City or a global financial institution . If a second coalition were formed , Nick Clegg has claimed the Lib Dems would serve as the ‘ heart ’ of a Tory-led government , opposing welfare cuts , or the ‘ brains ’ of a Labour one – reining in borrowing . Mr Clegg has appeared in public several times in recent weeks to make economic announcement with David Laws , who held the Treasury job before Mr Alexander . Mr Alexander has attacked the Conservatives ’ plans to slash £12billion from the welfare bill as a ‘ dangerous deceit ’ , and accused them of trying to ‘ balance the books on the backs of the working poor. ’ He said last week : ‘ We said we will talk first to whichever party has strongest mandate from the electorate . It is for the electorate to decide who has the strongest mandate , who has the most seats in parliament . That is who we talk to first. ’ A spokesman for Mr Alexander said the plan for a peerage was ‘ complete , total , utter nonsense ’ . He said : ‘ Danny is focused on one thing which is retaining his seat and he ’ s working very hard to do that . It ’ s obviously a fight but he will do miles better than these wretched polls suggest. ’ A Lib Dem spokesman said : ‘ This is not on our radar . Charles Kennedy is not going to lose his seat and Danny Alexander is not going to lose his seat , we ’ ve seen the figures . They are fighting to get back into Parliament and we believe they will be successful so this is not relevant . ’
Plan hatched for Chief Secretary to the Treasury to go to House of Lords . Polls suggest he is on course to lose his seat to the Scottish nationalists . But he is a close ally of Nick Clegg and worked well with George Osborne .