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 .