BARONESS Thatcher remained as controversial in death as she was in life – attracting tributes and criticism in equal measure last night.

Britain’s first female prime minister – and one of the most important politicians of the 20th Century – died in her suite at the Ritz Hotel, in London, yesterday morning after suffering a stroke. She was 87.

Her death was announced by family spokesman Lord Bell, who said: “It is with great sadness that Mark and Carol Thatcher announced that their mother, Baroness Thatcher, died peacefully following a stroke this morning.”

In recognition of her huge impact on domestic and international politics, she is to have a ceremonial funeral with full military honours at St Paul’s Cathedral.

The decision to accord Mrs Thatcher the same status as the Queen Mother and Princess Diana sparked anger from her critics and offended supporters who had wanted a full state funeral.

The Queen was said to be sad at the news, while David Cameron praised her as a great leader and a great Briton.

The Northern Echo: thatcher

LAST IMAGE: Baroness Thatcher in one of the last public appearances at the 50th birthday party of former defence secretary Dr Liam Fox, on September 24, 2011

Tony Blair credited her with changing the world.

International leaders added their voices to the tributes, with Barack Obama saying Lady Thatcher had been a ‘‘true friend’’ to the US.

But there was no love lost in parts of the North-East, Wales and Scotland, where Mrs Thatcher’s policies did untold damage to coalfield communities.

Dave Hopper, secretary of the Durham Miners’ Association, compared her to Adolf Hitler.

Chris Kitchen, general secretary of the NUM, said she was “vindictive”, adding: “I’ll not be shedding a tear at her demise.”

Respect MP George Galloway sparked anger by tweeting “Tramp the dirt down” – a reference to an anti-Thatcher Elvis Costello song from the 1980s.

And in Glasgow and Brixton, hundreds of cheering people held impromptu parties to celebrate.

Mrs Thatcher won three General Elections before she was ousted by her own MPs in an internecine coup in 1990.

She gave the go-ahead for a risky operation to recover the Falklands in 1982, resisted European integration, encouraged wider share ownership and became a global champion of free market economics.

Her close relationship with former US President Ronald Reagan enabled Britain to punch above its weight on the world stage.

However, her vicious industrial dispute with the miners in 1984-5 ripped communities apart, the dismantling of old manufacturing industries put millions on the dole and the poll tax led to unprecedented scenes of social unrest including riots in Trafalgar Square.

When the news broke Prime Minister David Cameron cut short a trip to Europe and announced the recall of Parliament tomorrow to give MPs a chance to pay tribute.

Labour and the Tories suspended campaigning ahead of next month’s key local elections, and the Lib Dems are also not expecting to hold any events. Flags were flying at half-mast on public buildings.

Baroness Thatcher died after suffering a stroke while recuperating following a minor operation.

Within hours some Tory MPs called for a full state funeral to honour her contribution to the country.

Alun Cairns, MP for the Vale of Glamorgan, tweeted: “Margaret Thatcher deserves a state funeral after transforming our nation in such a positive way. The changes were never reversed.”

However, it emerged that Mrs Thatcher had rejected the idea of a state funeral. Instead, the streets will be cleared for a procession from Westminster to St Paul’s, where there will be a televised service attended by dignitaries from around the world.

The event will take place next week, but the day has yet to be confirmed.

The cost of the funeral will be shared between the state and Lady Thatcher’s estate.

In a statement outside No 10, Mr Cameron said: ‘‘Today we lost a great leader, a great prime minister and a great Briton. Margaret Thatcher didn’t just lead our country – she saved our country.”

Labour leader Ed Miliband said she would be remembered as “a unique figure”, adding: ‘‘The Labour Party disagreed with much of what she did and she will always remain a controversial figure.

But we can disagree and also greatly respect her political achievements and her personal strength.’’

Barack Obama said: ‘‘Many of us will never forget her standing shoulder to shoulder with President Reagan, reminding the world that we are not simply carried along by the currents of history – we can shape them with moral conviction, unyielding courage and iron will.’’

Reformist Soviet leader Mikhail Gorbachev said: “Margaret Thatcher was a heavyweight politician and a striking person. She will remain in our memories, and in history.”