Thatcher urges Tories to 'hold firm on their beliefs' if they want to win back power

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The former prime minister was speaking as she unveiled a bust of herself at the Conservative Party headquarters in Millbank.

Lady Thatcher, who was shown round by Tory leader David Cameron, issued a rallying cry for traditional Tory values.

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Past and present: Baroness Thatcher and David Cameron at the unveiling of a statue in the former prime minister's honour. Mr Cameron described Lady Thatcher as a 'humbling act to follow'

She said: "The Conservative Party has always been at its best when it has held firm to its beliefs. As we face the future, let us remain steadfast. As Churchill taught us, let us never falter in proclaiming what we know is right.

"My message to you is to have faith in all we stand for and to go forward with confidence."

Mr Cameron said: "We now have two bronze statues in Conservative Party Headquarters. One is of Winston Churchill, the greatest wartime leader this country has ever had. And now it is joined by a statue of the greatest peacetime leader this country has ever had."

Addressing Lady Thatcher, he said: "You are a humbling act to follow. I first met you when I was a Trade and Industry researcher in our old offices in Smith Square. We are thrilled to have you here in our new offices and see you looking so well."

The bust, by artist Margarita Hernandez, will stand opposite one of Sir Winston Churchill.

Lady Thatcher said it was a "very special honour" to be placed near the great wartime leader.

"Churchill reminds us of the enduring values of our party," she said.