THE most divisive leader in Britain's political history continued to split opinion even in death.

The news that Margaret Thatcher had died at the Ritz Hotel in London following a stroke was met with both grief from supporters and 'celebrations' from those staunchly opposed to her politics.

As tributes to Baroness Thatcher poured in from around the world, a group of around 300 people gathered in Glasgow city centre for what was described as a 'party' to mark her passing.

The 87-year-old, who had suffered bouts of illness for many years, was said to have died peacefully.

The death of the former Conservative Prime Minister was announced by her spokesman Lord Bell on behalf of her children Mark and Carol Thatcher.

Downing Street confirmed that Baroness Thatcher will be given a ceremonial funeral with full military honours, which is expected to take place next week.

Scottish First Minister Alex Salmond called her "truly formidable".

He said: "Margaret Thatcher was a truly formidable prime minister whose policies defined a political generation.

"No doubt there will now be a renewed debate about the impact of that legacy.

"Today, however, the proper reaction should be respect and condolences to her family."

The Queen was said to be "sad" to hear the news.

A statement from Buckingham Palace said: "The Queen was sad to hear the news of the death of Baroness Thatcher.

"Her Majesty will be sending a private message of sympathy to the family."

Baroness Thatcher earned a place in the history books when she became Britain's first woman prime minister in 1979, a post she held until 1990.

She was both loved and reviled for her right wing, free market policies.

When she resigned as PM, she had been the first leader to win three General Elections in a row; in 1979, 1983 and 1987.

Over her 11 years as leader of the government even her critics admitted that she changed the face of the country, although not all of them – particularly her Scottish opponents – thought those were changes for the better.

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

Last night, in Glasgow's George Square, more than 300 people gathered for a 'party' to celebrate her death, organised via social media sites Facebook and Twitter.

Joyce Drummond, 50, from Mosspark, said: "We are here to mark Thatcher passing and to acknowledge her legacy.

"Her legacy is Hillsborough, the Poll Tax, nothing good for the working classes."

Earlier, the council urged people to stay away from the event.

A statement said: "Regardless of whether or not it's appropriate to have a party to celebrate someone dying, this event was organised without involvement or consent from the council and we have safety concerns for anyone attending."

Members of the armed services will line the route of Baroness Thatcher's funeral cortege from the Palace of Westminster to St Paul's Cathedral.

Number 10 said a wide range of friends and colleagues would be invited to the service at St Paul's, which would be followed by a private cremation.

The funeral itself will be televised.

MPs are to pay tribute to Baroness Thatcher in a special session of Parliament

David Cameron announced that the Commons was being recalled from Easter recess tomorrow, as he hailed the lasting legacy of a "great Briton" who defied barriers.

Mr Cameron said: "Margaret Thatcher didn't just lead our country – she saved our country.

"She took a country that was on its knees and made Britain stand tall again."

Baroness Thatcher was born Margaret Roberts and became the Conservative MP for Finchley, north London in 1959.

After filling the role of Education Secretary, she took over as leader of the party from former prime minister Edward Heath in 1975.

She retired from the Commons in 1992.

During her time in Parliament, her government privatised several state-owned industries. She also led the country when the UK went to war with Argentina over the Falkland Islands in 1982.

Margaret Thatcher, almost single-handed and in the space of one tumultuous decade, transformed a nation.

In the view of her many admirers, she thrust a strike-infested half-pace Britain back among the front-runners of the industrial nations of the world.

For others, however, she was a destructive force who crushed the mineworkers and closed steel plants and introduced the infamous Poll Tax.

She towered above all other political figures in Britain and her dominance of the Cabinet was supreme and rarely challenged.

Yet the Iron Lady – a title bestowed upon her by her enemies in Moscow, which she relished – was not all stern, steely and strident.

She could not disguise her glee – "We are a grandmother" – when her first grandson, Michael, was born in Dallas in February, 1989.

She regularly and touchingly admitted that she could not do her job properly without the unfailing and unstinting support of her "marvellous" husband, Denis.

His death, in June 2003, some weeksafter major heart surgery, was a profound blow to her.

ONE OF THE UGLIEST INDUSTRIAL DISPUTE EVER

MARGARET THATCHER vividly remembered the Tory Government's confrontations with the miners in the early 1970s.

Back then, miners' industrial action led to strikes and power cuts. Ted Heath, the Prime Minister, imposed a three-day week to conserve energy.

The outspoken Arthur Scargill was the National Union of Mineworkers leader and Thatcher always knew she would have to confront him again.

In March 1984, it happened.

Thatcher, who had been returned to power in 1983, was intent on taming the trade unions. But the immediate trigger for the strike was the closure of 20 pits in locations that included Scotland.

The Yorkshire and Scottish branches of the NUM went on strike. The national strike began on March 12. It would be one of the ugliest industrial disputes ever seen in Britain.

The fact that no national strike ballot was ever held to legitimize the strike divided some mining communities. In Nottingham, many miners continued to work.

Mass picketing outside collieries became a nightly feature on TV news bulletins.

Occasionally there were violent clashes between police and striking miners – most notoriously at the Orgreave coking plant in South Yorkshire in June 1984.

Afterwards, Scargill declared: "We've had riot shields, we've had riot gear, we've had police on horseback charging into our people, we've had people hit with truncheons and people kicked to the ground. The intimidation and the brutality that has been displayed are something reminiscent of a Latin American state."

But South Yorkshire Police said its officers had to wear protective helmets and use shields to keep the factory gates open.

Thatcher was determined that the miners would not win. The Government had taken great care, before the strike, to stockpile coal, and made it clear that it would stand firmly behind the police.

A central control room at Scotland Yard allowed officers to be sent speedily to pits where Scargill's flying pickets were congregating.

As the strike wore on, many miners began to experience genuine hardship.

The NUM's funds were sequestered by the courts. In the end, on March 3, 1985, a year after the strike had begun, the union's national executive voted 98 to 91 for a return to work – without any deal over pit closures.

Scargill alleged the Government had been "aided and abetted" by the judiciary, the police and the media. Thatcher declared: "The miners would have been back earlier if the strike had not been kept going by intimidation and I am very glad now they can go back."

The strike cost the country an estimated £1.5 billion. In some areas, its effects can still be seen and felt today.