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"Without doubt she was the most significant Prime Minister of the modern era.She won the Cold War and defeated the Soviet Union and turned an economy which was the sick man of Europe in to one of the strongest in the modern world.
"I was only a middle ranking minister in her Government. You worked within the agenda which she set." Grantham's current MP Tory Nick Boles said: "One has to say she is one of the remarkable figures of the 20th century.
Her name is included on a board of former head girls at the Grantham and Kesteven Girls' High School and a small section of the town's museum is devoted to her life.
The museum trustees recently launched a campaign to raise £200,000 with half to go to commission a statue of the former Prime Minister and the remainder to be spent on developing the museum. Trustee Helen Goral said: "We are really saddened by the news.
There are probably only three or four other Prime Ministers in our history who have left their mark in such a way. "Her birthplace, rather bizarrely, is a holistic therapy centre.
"It is a very interesting contrast with Tony Blair. It would be nice if one day that could be bought by a trust and set up as a Thatcher Museum." The Bishop of Grantham, Tim Ellis, said the town's first thoughts were with Mrs Thatcher's family.