Protesters outside the Royal Courts of Justice on Fleet Street in central London booed as the coffin of Baroness Thatcher made its way towards St Paul's cathedral.
Police watched as a small crowd booed and held signs. Others along the route responded by applauding.
As the gun carriage made its way along the Strand towards Fleet Street, applause and boos competed growing in volume.
A fight nearly broke out between one group of supporters of Lady Thatcher and demonstrators, with insults exchanged and threats made.
Three men were arrested last night on suspicion of criminal damage in the City of London last night, Scotland Yard said.
The trio were held in Threadneedle Street after police spotted graffiti on the wall. They searched a nearby car and found articles that could be used for alleged criminal damage.
The three man remain in custody.
Protesters have started to gather to line the funeral route by the Royal Courts of Justice.
Retired teacher Henry Page from Brighton is at St Paul's with a protest banner.
The 61-year-old said:
The reason I have come today is because £10 million in the current economic climate is inappropriate when people can't afford to pay their bills.
If the cost of this were acceptable, we would know what that cost is. But we don't.
[Clement] Attlee did not get a state funeral or a ceremonial funeral. He was the prime minister who founded the NHS, he was Churchill's deputy prime minister in the national government.
It almost begs the question: is it only Tories that get a state or ceremonial funeral?