The smoking ban and cheap supermarket booze have been blamed for the closure of the venue where Tony Blair celebrated his election victories.
Trimdon Labour Club, which was also the location Blair chose to announce his intent to stand as Labour leader in 1994, is to be closed down and turned into a pub with no political allegiance.
Nick Bish, chief executive of the Association of Licensed Multiple Retailers (ALMR), said the Labour Party only had itself to blame.
He said: "It's always distressing when licensed premises have to close but in this case the patrons need look no further than their own party in government for someone to blame.
"The smoking ban may have had good intentions but it was shockingly badly implemented - Dr John Reid saw the signs and suggested special categories, but was ignored.
"'Just do food', said the ASH activists - in a working men's' club? - as if!"
The club, which was also the scene of Blair's standing down announcement, is set to close on July 22.