Britain's only woman Prime Minister, the unyielding, outspoken Thatcher led the Conservatives to three election victories, governing from 1979 to 1990, the longest continuous period in office by a British premier since the early 19th century. A grocer's daughter with a steely resolve, she was loved and loathed in equal measure as she crushed unions, privatised vast swathes of British industry, clashed with the European Union and fought a war to recover the Falkland Islands from Argentine invaders.

She struck up a close relationship with US President Ronald Reagan in the Cold War, backed the first President George Bush during the 1991 Gulf War, and declared that Soviet leader Mikhail Gorbachev was a man she could do business with.

A 1976 speech criticising the repressive policies of the Soviet Union led to a Russian newspaper dubbing her "the Iron Lady".

"Very few leaders get to change not only the political landscape of their country but of the world. Margaret was such a leader. Her global impact was vast," said Tony Blair, Labour Prime Minister from 1997-2007.

Thatcher died peacefully this morning at the Ritz hotel after a stroke. She had been in poor health for months and had declined into dementia in her final years.

Prime Minister David Cameron cut short a visit to Europe to return to Britain after the death was announced and British flags on government buildings and royal palaces across London were lowered to half mast. Cameron said she would go down as Britain's greatest peacetime Prime Minister. "We've lost a great leader, a great Prime Minister and a great Briton," he said. "The real thing about Margaret Thatcher is that she didn't just lead our country, she saved our country."

US President Barack Obama said: "America has lost a true friend."

The British government said Thatcher would be given a ceremonial funeral with military honours at London's St Paul's Cathedral, which falls short of a full state funeral, in accordance with the wishes of her family.

"Thatcher was a politician whose word carried great weigh. Our first meeting in 1984 marked the beginning of a relationship that was at times difficult, not always smooth, but was treated seriously and responsibly by both sides," Gorbachev, 82, said. — Reuters

Prime Minister of UK

May 1979-November 1990

Leader of Opposition

February 1975-May 1979

Leader of Conservative Party

February 1975-November 1990

Secretary of State for Education & Science

June 1970-March 1974

Member of Parliament of Finchley

October 1959-April 1992

“The real thing about Margaret Thatcher is that she didn't just lead our country, she saved our country.”

— David Cameron, PM

• Margaret Thatcher was the longest serving British PM and the first woman to hold the post
• The unyielding, outspoken Thatcher led the Conservatives to three election victories, governing from 1979 to 1990, the longest continuous period in office by a British premier since the early 19th century
• A grocer’s daughter with a steely resolve, she was loved and loathed in equal measure as she crushed the unions, privatised vast swathes of British industry and clashed with the European Union
• A 1976 speech criticising the repressive policies of the Soviet Union led to a Russian newspaper dubbing Thatcher ‘The Iron Lady’