Former Prime Minister Margaret Thatcher returned to 10 Downing Street yesterday to attend the unveiling of her portrait.

Dressed in a long royal-blue jacket, Baroness Thatcher was greeted on the steps of her former residence by Prime Minister Gordon Brown and his wife Sarah.

Mr Brown shook hands with Lady Thatcher, who paused for photographs outside the famous door of No. 10 but said nothing to waiting reporters.

As Lady Thatcher stood outside the door to Number 10, clasping her trademark handbag, some reporters called out "Is it good to be home?" and "Are you pleased to be back?"

Lady Thatcher's portrait was being unveiled at a private reception hosted by the Prime Minister and will go on permanent display in the stateroom's lobby on the first floor of Downing Street. The guest list for yesterday's event, drawn up by Lady Thatcher herself, included former members of her Cabinet such as Lord Carrington and Michael Forsyth, close advisers like Sir Bernard Ingham, Lord Bell, Lord Saatchi and some of the journalists who covered her years in power, including former editor of The Sun Kelvin MacKenzie and ex-TV reporter and Strictly Come Dancing star John Sergeant.

Current Conservative leader David Cameron was also understood to be attending, but was not seen entering Downing Street by the front door.

Lady Thatcher left Downing Street after the 50-minute reception, stopping to exchange a few words with Mr Brown and wave to photographers before being taken away in a chauffeur-driven car.

"The Prime Minister made a short speech in which he thanked Baroness Thatcher for the contribution she has made to the country over many years," said the spokesman. Lady Thatcher thanked the Prime Minister for his comments before mingling with guests, but did not make a speech.

Mr Brown offered Lady Thatcher the honour of an official portrait in Downing Street when she visited him for tea at Number 10 in September 2007, a few months into his premiership. Although photographs of all modern Prime Ministers line the main staircase in Number 10, only two 20th century premiers have paintings on display: David Lloyd George and Winston Churchill. Lady Thatcher is believed to be the first living politician to have her portrait hung in the official residence of the Prime Minister.

The portrait by Richard Stone, who also painted the Queen and the Queen Mother as well as Labour Prime Ministers Harold Wilson and James Callaghan, was paid for by an anonymous private donor.

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