Labour's nightmare is complete: Margaret Thatcher has returned to Government

New Business Secretary Sajid Javid shows off portrait of former Tory leader as he moves into his new office

Margaret Thatcher was the first woman to hold the office of Prime Minister of Great Britain (Getty) (Keystone/Getty Images)

This time last week Labour officials were preparing their transition into Government, confident that Ed Miliband would win the election.

But days after slumping to their worst election defeat in nearly 30 years their nightmare was completed when pictures emerged of Margaret Thatcher returning to Government.

Sajid Javid, the new Business Secretary, showed off a portrait of the former Tory leader to be put up in his new department so she can keep a watchful eye over the first majority Conservative Government in 18 years.

Mr Javid has already spoken of his desire to follow in his idol's deregulating footsteps by cutting red tape and pursue free market values at the Department for Business.

“I believe passionately in free enterprise, that free enterprise is the lifeblood of any successful economy,” he said after David Cameron appointed him to his new role.

“What we do know is that sometimes when government creates new rules and regulations they make things worse not better. We are clearly on the side of business,” he added.