Selling Peerages? Why not? Making such transactions explicit would be a harm- less step, and even have useful benefits.

The nouveau riche appear to take genuine satisfaction from the status a peerage bequeaths. For the self-made entrepreneur or bonus-flushed banker, after acquiring a farm or country estate, a social epithet is the logical next step. Why begrudge them?

Clearly there is healthy demand, with people rumoured to be ready to spend from £250,000 to £1 million to style themselves baron, the most junior rank of the nobility. Weightier titles would command much more.

The Treasury, say every six months, could put up for auction two dozen titles of baron, ten of viscount, a brace apiece of earl and marquess, and perhaps one of duke, as it did successfully with telecom spectrum licences. Beyond reserve prices, to preserve dignity, the highest bidder would buy them. There might even be scope to expand the market by inventing one or two new titles, particularly to appeal to women, and with Celtic undertones, for the Scots and Welsh.

Where present arrangements fall short is by linking a peerage to a seat in the House of Lords, an obvious anomaly. Ending this link may help to break the 95-year log jam in reforming the second chamber. Its legislators, shorn of flummery, could be elected instead.

There is no reason such a move should deter demand for peerages. Indeed, some anecdotal evidence suggests attending the Lords is regarded as inconvenient or unnecessary by certain peers. But for those who do find Westminster congenial, there would be nothing to stop them setting up a private London club for peers; they could indulge their vanity titles, mount heraldic shields and be attended by deep-bowing servants in livery, addressing them as “My Lord” or “My Lady” .

They may even hold debates, discussing affairs of state and topics of interest to members, such as farming, forestry and financial regulation of the City. Provided the new nobility paid their bills, they could call their club anything: House of Lairds, perhaps?

Most of us would cheerfully ignore their proceedings but auctioning peerages would generate a useful income stream for the Exchequer, to spend on education, perhaps. How about lessons for aspiring politicians on probity in public life?