The Lincolnshire town where Baroness Thatcher was born and raised has been hugely impacted by her life and rise to power, a local councillor has said.

Her humble start began in Grantham in 1925 when she was born Margaret Hilda Roberts, the daughter of a greengrocer.

The only sign that the former prime minister was born and grew up at her father's corner shop on North Parade, which now serves as the Living Health Chiropractic Clinic and Holistic Retreat, is a simple plaque above the entrance.

Councillor Richard Davies, Conservative for Grantham North West, described the news of her death as "devastating", but "not entirely unexpected" due to her recent ill health.

"It is a great loss for Grantham and the community," he said.

Baroness Thatcher was "an incredible character" he said who, after being born above a corner shop in the town, excelling at the local grammar school and going on to university, then rising to power through the Conservative party and through parliament went on to "defeat the Soviet Union and win the Cold War."

"That's an unparalleled career, an incredible legacy," Mr Davies said.

"Here we are, twenty odd years ago since she left Downing Street, and still the impact of her is all around us in terms of how Grantham operates.

"Grantham is a town of small market traders. We are a market town. The archetype of free trade."

There are many diverse opinions held about her in the small Lincolnshire town, and a proposal to erect a statue of her in the local museum courted controversy.

In 2002, a white marble statue - unveiled by the former prime minister - was decapitated at Guildhall Art Gallery, but later restored and put in storage at the House of Commons.

Mr Davies said money from around the world, including countries such as Singapore, Canada and Australia, had been sent to fund the latest proposals for the statue and Grantham Museum.

Helen Gorrell, chairwoman of Grantham Community Heritage Association that runs the museum, said The Margaret Thatcher Statue Project was launched last month as a way of celebrating her achievements and her heritage.

"The project's going really well," she said.

"We've had huge support from the local community and much further afield."

Ms Gorrell would not disclose how much had currently been raised but said it was "in line with our expectations."

She also said there were not yet any firm plans for what the statue would look like or what material it would be made of.

"We want to make sure its done properly and that it will be a fitting tribute," she said.

"It's very much up for discussion and the community will be involved in the decision."

A small space inside the museum houses an exhibition dedicated to Baroness Thatcher. On display is a pair of blue satin high heeled shoes that she owned around 1985, a matching bag blue crepe handbag, and a signed copy of Margaret Thatcher, The Downing Street Years.

The museum is also opening a book of condolence following her death.

Ms Gorrell said: "We here at the museum are really sad at the news of her passing.

"We want to extend our condolences to her family. We want to ensure that there is a fitting tribute to mark her life and we want to make sure we can make that happen."

Councillor Martin Hill, Lincolnshire County Council leader, paid tribute to Baroness Thatcher and described her as a "dominant force" in politics.

He said there were "diverse views" in the area surrounding her premiership, and added: "It really is quite an achievement for someone of a modest background to become prime minister, not to mention she was the first woman prime minister and the longest serving of the 20th century."