Baroness Thatcher died this morning aged 87 following a stroke, it was announced today.

The former prime minister, who had suffered bouts of illness for many years, was said to have died peacefully.

Her spokesman, Lord Bell, said: "It is with great sadness that Mark and Carol Thatcher announced that their mother, Baroness Thatcher, died peacefully following a stroke this morning.

"A further statement will be made later."

In a statement on the Downing Street Twitter feed, David Cameron said: "It was with great sadness that l learned of Lady Thatcher's death. We've lost a great leader, a great Prime Minister and a great Briton."

Mr Cameron will return early from his visit to Europe this afternoon.

Graham Brady, Conservative MP for Sale and Altrincham, said: "Lady Thatcher will be sorely missed. She will stand out as perhaps the greatest figure in British public life since the Second World War.

"Her absolute conviction, principle and her determination to stand up for Britain and to fight for freedom elsewhere in the world leave a lasting legacy.

"Upon the occasions when I had the privilege of meeting her I was always struck by her personal warmth, and by the humanity and respect with which she would treat people, whatever their place in the pecking order."

Another Conservative, Rossendale MP Jake Berry, said: “As Britain’s first woman PM, Margaret Thatcher was a role model for thousands across our country. As Prime Minister for 11 years she changed our country for the better.

“In time of crisis she showed true leadership both during the Falklands War and with her response to the IRA’s Brighton Bomb attack in 1984. My thoughts are with her family and friends.”

Chancellor George Osborne, MP for Tatton, said: "Sad news. Margaret Thatcher's belief in freedom and optimism about the future overcame all. Her determination is our generation's inspiration."

But those on the other side of the political divide, the reaction was less fond.

Graham Stringer, the Labour MP for Blackley and Broughton who was leader of Manchester council under Thatcher in the 1980s, said: "I only met Margaret Thatcher once, following the plane disaster at Manchester airport. Afterwards she sent me a personal not of condolence.

"But my main experience of her was that she was disastrous for Manchester, for the industry and jobs which she destroyed. One has to accept that she had political views that she stood up for and you have to admire that in a politician.

"But she was narrow. She had no interest in Manchester's Olympic bids, did not support them and viewed northern towns and their people with suspicion."

Asked if he was sad at Lady Thatcher's death, Mr Stringer said: "The honest truth is no, I'm not sad. I would never wish anybody ill in that sense but I have no feelings of affection towards Margaret Thatcher whatsoever. She was divisive."

Sir David Trippier - MP for Rossendale between 1979 and 1992 and a junior minister in the Thatcher governments, said: "It's the end of an era. She was a formidable leader. She has left a great legacy, rolling back the power of Europe and, with President Reagan, speeding the dissipation of communism.

"And she did great things for Manchester in setting up the Central Manchester Development Corporation [which helped build Bridgewater Hall] and the Trafford Park Development Corporation."

He added that he had 'a very kind streak', strongly advising him, in 1988, to go against doctors' orders and not have surgery on his injured arm, recommending physio instead. Sir David - who served as a minister for trade and then the environment - followed the advice and made a full recovery.

Elected when as Baroness Thatcher came to power in 1979 in the wake of the Winter of Discontent, Sir David recalled: "At that time the country was in a mess. It was in decline and I thought it was terminal. She helped to raise out self-esteem and self-respect and increased our influence abroad.

"Rossendale couldn't escape the Winter of Discontent. People were saying to me before the 1979 election that we had to curb the power of the unions, who were getting stronger and stronger. The country was going down the pan."

Bury North MP David Nuttall said: "She was determined, resilient and an inspiring leader. Whatever one's views on her policies, she changes the landscape of British politics."

He added that there had been 'a media circus' when Lady Thatcher had come to support his ultimately unsuccessful campaign to win Morecambe for the Conservatives in 2001.

Coun Matthew Colledge, leader of Trafford Council said: “If politics is about holding true to what you believe in then Margaret Thatcher must surely rank as one of the greatest politicians of the modern age.

Admired by the Right and respected by the Left, even if grudgingly, for the strength of her convictions, she was relentless in driving through what she felt was right for Britain.”

Susan Williams, the former leader of true-blue Trafford council, said she was 'gutted' at the news.

She said of Baroness Thatcher: "She was a role model. I remember the day she became prime minister and it brought new hope to the country.

You can see the tributes coming in from around the world, showing what influence she had the global stage.

"I only got the chance to meet her once. She turned to me and said,

'Women know how to run things, don't we?' I just found her very inspiring whether you agreed with her views or not. It's a sad loss."

Sid Lloyd, Conservative leader in Stockport, said: "She was clearly the most outstanding prime minister of this century. Only Churchill came close. She had a real vision for Britain's future and took on the unions who were trying to take down the democratically elected government of the day."

Sir Richard Leese, leader of Manchester City Council, said: "We profoundly disagreed with the majority of Lady Thatcher's policies and her damaging legacy will doubtless be the subject of debate over the

coming weeks, but her death is a private matter for the family and should be treated as such."

Unions were less favourable in their reaction.

Steve North, branch secretary of Unison in Salford, said that working class people would be 'celebrating' news of Baroness Thatcher's death.

He added: "It is not usually appropriate to speak ill of the dead, but before anybody condemns such celebrations I would ask them to think of the pain, misery and yes the unnecessary deaths from poverty that Thatcher inflicted upon people.

Her system ruined so many lives and her legacy, continued loyally by this current government continues to do so."

A Number 10 spokesman said: "We can announce that, with the Queen's consent, Lady Thatcher will receive a ceremonial funeral with military honours.

"The service will be held at St Paul's Cathedral. A wide and diverse range of people and groups with connections to Lady Thatcher will be invited.

"The service will be followed by a private cremation.

"All the arrangements being put in place are in line with wishes of Lady Thatcher's family. Further details will be published over the coming days."

The Queen is sad to hear the news of the death of Baroness Thatcher and Her Majesty will be sending a private message of sympathy to the family, Buckingham Palace said today.

Work and Pensions Secretary Iain Duncan Smith said Baroness Thatcher was "the reason I came into politics".

He said: "Watching her set out to change Britain for the better in 1979 made me believe there was, at last, real purpose and real leadership in politics once again.

"She bestrode the political world like a colossus.

"This is dreadfully sad news and my thoughts and prayers are with her family."

Senior Tory MP David Davis said: "Margaret Thatcher was the greatest of modern British prime ministers, and was central to the huge transformation of the whole world that took place after the fall of the Soviet Union.

"Millions of people in Britain and around the world owe her a debt of gratitude for their freedom and their quality of life, which was made possible by her courageous commitment to the principles of individual freedom and responsibility.

"Her passing is a very sad event and she will be greatly missed."

Liberal Democrat leader Nick Clegg said: "Margaret Thatcher was one of the defining figures in modern British politics.

"Whatever side of the political debate you stand on, no-one can deny that as prime minister she left a unique and lasting imprint on the country she served.

"She may have divided opinion during her time in politics but everyone will be united today in acknowledging the strength of her personality and the radicalism of her politics.

"My thoughts are with her family and friends."

On his Twitter feed, London Mayor Boris Johnson said: "Very sad to hear of death of Baroness Thatcher. Her memory will live long after the world has forgotten the grey suits of today's politics."

UK Independence Party leader Nigel Farage wrote on Twitter: "Very sad to hear of the death of Margaret Thatcher, a great patriotic lady."

Lord Sugar became one of the first to express his condolences, writing: "Margaret Thatcher died today. A great lady she changed the face of British politics, created opportunity for anyone to succeed in the UK. RIP."

In a further posting, he added: "Baroness Thatcher in the 80s kick-started the entrepreneurial revolution that allowed chirpy chappies to succeed and not just the elite."

Lady Thatcher earned a place in the history books as the first woman prime minister when she entered Downing Street in 1979.

Over the next 11 years even her critics admitted that she changed the face of the country.

In recent years her health deteriorated, and she stopped making public appearances.

Lady Thatcher suffered several small strokes in 2002, and received medical advice against accepting any more public speaking engagements.

Her increasingly frail condition when she was seen - especially after the death of husband Denis in 2003 - led to frequent bouts of speculation about her health.

However, MPs and friends who saw her regularly said she remained alert and interested in politics, and she was not known to have deteriorated notably recently.

There have been calls for the ex-premier to receive a state funeral, although she was a divisive figure for many on the Left.

Mrs Thatcher remained a towering figure in British politics despite her withdrawal from the public gaze.

One of Gordon Brown's early actions after entering Number 10 in 2007 was to invite her in for tea, declaring his admiration for the "Iron Lady".

Mr Cameron has also often tried to associate himself with her policies and leadership style.

We'll be adding updates to the blog below throughout the day as reaction comes in ...