In 1882 the Liberal Party wanted to hold a meeting at the Institute in Back Lane to promote the party. However, the Institute rules did not permit the premises to be used for political purposes.
A committee meeting was held to decide on a change to the rules to allow such meetings, and was voted through, and a meeting of the Liberal Party was scheduled for 1st June 1882. However the trustees then decided that such a rule change should not be allowed and on the day of the meeting they barricaded the doors. The Liberals then had to hold their meeting at the Town Hall.
As a result the Liberals built their own premises on Bridge Street. The foundation stone was laid by James Williamson, the Liberal MP for Lancaster on 25th October 1887. He returned to officially open the building on the 18th February 1889.
The Liberal Club had a large assembly room upstairs, and a reading room, committee room and billiard room on the ground floor. It was a very popular location for local dances.
The building is currently used as office accommodation.