The internet chalked up another first last night when Britain's newest political party, the People's Alliance, launched itself online.

The Alliance promises to introduce a written constitution, a single universal benefit for all (or guaranteed minimum income), and have all legislation approved by electronic referendums.

The alliance is being promoted by three former Conservative party officials, including Iain Duncan Smith's former chief of staff. Its key spokesman is, however, a former undertaker.

Howard Hodgeson made his fortune in the funeral business, before selling up and becoming a motivational speaker and author - one of his books is titled "How to become dead rich".

Mr Hodgeson said today: "this is a historic moment - the first ever political party to launch via the internet."

"The internet is a vital part of our democratic and constitutional proposals which will give the people the right to decide to which laws are passed and which are scrapped, through a process we are calling "direct democracy".

"People will be able to cast their votes online - as well as by phone or post."

The alliance's policies are inspired by two very different political cultures - those of California and Switzerland, where government legislation is frequently overturned by referendum.

It is set to run as a populist alternative to the Tories in the Scottish parliament election in May. Its founders hope it will benefit from the Conservatives' unpopularity north of the border, where the party is seen as an English party.

They also believes that by first contesting an election run under a system of proportional representation it will be able to gather public support before the next general election. Britain's first-past-the-post system has historically prevented new parties from making an electoral breakthrough.

The alliance is funded by a Scottish millionaire and former donor to the Conservative party, Robert Dunward. He has ruled out entering politics himself.

Though the main parties have dismissed the alliance's prospects, Mr Hodgeson is bullish about its future.

"Since our new website went live last night we have already signed up our first members online and are on target for 2,000 members within the first few weeks," he said.