THERESA May’s embattled government has come under yet more pressure after it emerged a failed Scottish Conservative General Election candidate is in line for a peerage and a plum ministerial role.

The First Minister was among the first to attack the anticipated move by the Prime Minister to give Ian Duncan a seat in the House of Lords and a post in the Scotland Office.

Duncan, who is currently an MEP, stood as the Tory candidate for Perth and North Perthshire on June 8 but was beaten by the SNP’s Pete Wishart by 21 votes.

Yesterday, it was reported he is in line to be given the title Lord Duncan of Springbank, in a nod to the road he grew up in Alyth, and take up the position as the parliamentary under-secretary of state for Scotland – deputy to Scottish Secretary David Mundell.

The SNP and Scottish Labour condemned the planned appointment, which is expected to be announced this week.

Nicola Sturgeon tweeted: “This should not be allowed. Rejected by the voters – but installed in government anyway, via the unelected House of Lords.”

Wishart said the move was “extraordinary”, and underlined the “undemocratic” nature of the House of Lords. He said it was also a snub by May to the 12 newly elected Tory MPs.

“That anyone can be rejected by the electorate and then just days later find themselves in a powerful government role is fundamentally undemocratic and should not be allowed in a modern society,” said Wishart.

“It also says something about the new group of 12 Scottish Tory MPs who have been passed over as apparently not up to the job.”

He added: “The House of Lords is a ridiculous, archaic institution which is accountable to no-one and yet wields huge influence over how our laws are made.

“Politicians should not be rewarded for failure and should not end up governing the country when they lose democratic elections.

“The Tories should think long and hard. To proceed with the appointment of Ian Duncan would be a big mistake, an insult to the people of Perth and North Perthshire and an affront to democracy.”

Scottish Labour leader Kezia Dugdale also hit out.

“Handing out a peerage to Ian Duncan would once again raise serious questions about the unelected House of Lords, she said. “It would be an affront to democracy.”

“Ian Duncan was rejected by the people of Perth and North Perthshire just days ago. Now it seems he will sit in Parliament anyway thanks to a Tory stitch-up.That shouldn’t be how our democracy works.

“Labour believes in the abolition of the outdated House of Lords. Our People’s Constitutional Convention will address the growing democratic deficit across Britain.”

News of the move emerged in yesterday’s Courier, which reported that earlier speculation had centred on whether former MSPs John Lamont or Douglas Ross would get the Scotland Office job.

Both held senior positions in the party in the Scottish Parliament, with Lamont acting as Tory chief whip in Holyrood and Ross the party’s justice spokesman.

Duncan is set to take over in the Scotland Office ministerial role from Andrew Dunlop – who also secured the position after being appointed to the House of Lords.

Lord Dunlop announced he was stepping down from the post two days after the General Election.

He made his decision public on Twitter, stating: “Joined govt 6 years ago to help keep the UK together. 13 Scottish Tory MPs & a 62 per cent Unionist vote share seems a good moment to bow out.”

He put on record his thanks to “all friends & colleagues in government”, particularly Scottish Secretary David Mundell, as well as “those from across political parties with whom I’ve worked”.

The Scotland Office last night declined to comment on the report.

A spokeswoman said: “An announcement about a new Scotland Office minister will be made in due course. We are not commenting on speculation.”

Duncan’s Scotland Office appointment means he will have to resign as an MEP, with Nosheena Mobarik expected to take his place.

He was elected as a MEP three years ago after campaigning on a platform of delivering reform in the European Union as well as an in-out referendum. Since 2014 he has served as the chief whip of the UK Conservative Delegation.