The total result I think is rather better than I had expected Sir Anthony, challenger

Appearing outside Number 10 the Prime Minister made a public address but refused to answer any questions.

"I would like to say how very pleased I am with this result and how very pleased I am to have had the overwhelming support of my colleagues in the House and the people from the party in the country," she said.

She refused to comment any further saying it was business as usual.

Sir Anthony said he was delighted with the result.

"The total result I think is rather better than I had expected," he said.

Tory fall out

The challenge against Mrs Thatcher comes at the end of her worst six months in power.

Many Tories blame her anti-Europe stance for Labour's victory over the party in the European Parliament earlier this year - their first national election victory since 1974.

She also fell out with Foreign Secretary Sir Geoffrey Howe during the European Summit in Madrid over British membership of the Exchange Rate Mechanism.

But it was when Chancellor Nigel Lawson resigned over this and more fundamental issues concerning sterling that whispers of a leadership challenge began.

Tory party chairman Kenneth Baker has insisted Mrs Thatcher has widespread support.

"What the Conservative Party has decided today is that they want to be led into the 1990s and the next election by Margaret Thatcher," Mr Baker said.

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