Once again Margaret Thatcher has put her country's and party's interests before personal considerations Conservative Party Chairman Kenneth Baker

Downing Street issued a statement at 0930 GMT after Mrs Thatcher had informed her Cabinet and the Queen of her intention.

By 1200 GMT, Chancellor John Major and Foreign Secretary Douglas Hurd had announced they would now stand against Mr Heseltine in the next stage of the leadership contest.

The decision comes less than 24 hours after the Iron Lady had vowed to "fight on and fight to win" after winning the first round - but not with the required majority.

Tory Party Chairman Kenneth Baker said it was a typically brave and selfless decision from the prime minister.

"Once again Margaret Thatcher has put her country's and party's interests before personal considerations," he said.

And there were tributes to Mrs Thatcher from both sides of the House of Commons during Prime Minister's Questions.

Labour leader Neil Kinnock said the prime minister's decision showed she amounted to more than those who had recently turned against her.

But the outgoing Tory leader refused a request from Mr Kinnock to hold a general election so the British people could make their own choice about her successor.

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