The club was established in 1931 as Spencer Sports Club, a works team of the Spencer Corsets factory. Banbury United has played at the Spencer Stadium (currently known as the Banbury Plant Hire Community Stadium for sponsorship purposes) on Station Approach since the start of the 1934–35 season, having originally played at Middleton Road. In August 2015, a supporter-led Community Benefit Society took formal control of the club.