SIR Menzies Campbell is being lined up by senior Liberal Democrats to replace Charles Kennedy as leader of the party in a new year putsch.

With Kennedy under unrelenting pressure to resign, Lib Dem MPs are preparing to present him with a list of signatures calling on him to fall on his sword in favour of Campbell, the party’s deputy leader.

Significantly Simon Hughes, the Lib Dem president and former London mayoral candidate, has decided not to challenge for the leadership. He is popular among grassroots party members and would easily win if there were a leadership contest.

His decision paves the way for Campbell to be appointed as a “caretaker” leader until after the next general election when MPs hope that a younger contender, such as Nick Clegg, a new MP and former MEP, might become the Lib Dems’ version of the Tories’ David Cameron.

Campbell is understood to be ready to serve if the leadership is handed to him in a dignified “coronation”. The analogy used by senior Lib Dems is that of the succession of Michael Howard as Tory leader in 2003, when Iain Duncan Smith, the then beleaguered Conservative leader, was forced to resign and his successor was handed power without a divisive leadership election.

Yesterday senior Lib Dem MPs barely disguised their frustration with Kennedy.

Ed Davey, the party’s education spokesman, said: “The need for some sort of change was established before Christmas and we await developments. We will see what (Kennedy) says and what decisions he makes in the new year. People’s concerns have been aired.”

Another MP said: “There is a feeling that Charles is merely presiding over the party, not leading it. This was the case even before David Cameron became Tory leader and it is not going to go away just because of the holiday break.”

Hughes is said to have told friends over Christmas that although he believes he could win the contest outright, he does not want the job.

“Simon believes that although he would win on the one-member-one-vote system, he accepts that he is not popular among the parliamentary party and would face a tough time holding it together,” said a friend. “He knows the next few years are going to be tough and the likelihood is that the party will lose seats at the next election.”

The only stumbling block is Mark Oaten, the 41-year-old home affairs spokesman, who upset some MPs by pre-emptively setting out his stall for the leadership in a pre-Christmas interview.

One Lib Dem MP said: “It is felt that he damaged his chances by making such a high-profile move last month.”

Kennedy’s new year message last week failed to quell the pressure on him to resign, although he insisted that he would still be leader by the end of 2006.

Nearly 3,000 Lib Dem activists — including 386 councillors — have signed a petition calling on Kennedy to step down.

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