Baroness Thatcher was yesterday granted the honour of a ceremonial funeral at St Paul’s Cathedral in the presence of Britain’s Queen Elizabeth, dignitaries from around the world and all her successors as prime minister.

The UK’s first woman prime minister was given full military honours as the coffin bearing her body was brought to the cathedral in procession, through streets lined with mourners, on a gun carriage drawn by six black horses.

At St Paul’s, a congregation of more than 2,300 guests heard the Bishop of London Richard Chartres pay tribute to her “perseverance in struggle and courage”.

Among those present were more than 30 members of the Iron Lady’s cabinets from 1979 to 90, including Lord Heseltine and Lord Howe, whose challenges to her leadership triggered her removal from power.

Former cabinet ministers Michael Heseltine, top, and Norman Tebbit were among the congregation. Photos: Christopher Furlong/Chris Jackson/PA

Every member of the UK’s current cabinet attended, led by Prime Minister David Cameron, who gave a reading from the Gospel of St John.

Lady Thatcher’s coffin, placed beneath the dome of St Paul’s, was draped in a Union flag and topped by a floral tribute of white roses bearing the handwritten note “Beloved Mother - Always in our Hearts” from her children Sir Mark and Carol Thatcher.

Walking ahead of the coffin as it entered the cathedral were Lady Thatcher’s grandchildren Michael and Amanda, carrying cushions bearing her insignia of the Order of the Garter and Order of Merit. Amanda also gave a reading from the King James Bible.

The bishop avoided discussing the ex-Conservative leader’s political legacy, insisting the funeral was “a place for ordinary human compassion of the kind that is reconciling... for the simple truths which transcend political debate”.

But outside the cathedral, there were reminders of the Thatcher years’ bitter divisions as protesters joined mourners along the route.

Lying here, she is one of us, subject to the common destiny of all human beings – Bishop of London

Some voiced anger at the reported £10 million cost of the ceremonial funeral - though Cabinet Office minister Francis Maude insisted the final bill would be “much, much less” than this.

Although the event was not the state funeral received by Sir Winston Churchill, it was conducted with more pomp and ceremony than any seen in London since the Queen Mother’s death in 2002.

Mr Cameron insisted the funeral was a “fitting tribute” to a major national figure who was the longest-serving prime minister of the 20th century.

The Prime Minister accepted that opinions remain divided over the legacy of Lady Thatcher, who died last week aged 87.

But he said that she had created a new consensus during her time in power, telling BBC Radio 4’s Today programme: “In a way, we are all Thatcherites now.

“She was the first woman prime minister, she served for longer in the job that anyone for 150 years, she achieved some extraordinary things in her life. I think what is happening today is absolutely fitting and right.”

The format of the ceremony was guided by the personal wishes of Lady Thatcher, who made clear she wanted a religious funeral service rather than a memorial with political eulogies.

The Bishop of London focused on her humanity, telling the congregation: “Lying here, she is one of us, subject to the common destiny of all human beings.”

At the former prime minister’s request, music by British composers was played at the beginning and end of the service, and the hymns reflected aspects of her life.

Lady Thatcher chose the hymn He Who Would Valiant Be, while Charles Wesley’s Love Divine, All Loves Excelling marked the influence of her Methodist upbringing and patriotic verse I Vow To Thee My Country her love for Britain.

Brahms’s setting of Psalm 84 was the piece she chose to be played at the 2003 funeral of her husband Sir Denis, alongside whom her ashes will be laid to rest at the Royal Hospital Chelsea.

At the conclusion of the service, a blessing was given by Archbishop of Canterbury Justin Welby, before the coffin was borne out of the cathedral by pall-bearers drawn from military units with links to the Falklands War, to three cheers from the waiting crowd.

The Queen and Duke of Edinburgh joined Lady Thatcher’s family on the West Steps of the cathedral as a hearse took the body to a private cremation at Mortlake in south-west London.