Havering Council has confirmed there will be no lights switch-on in Romford or even Christmas trees this year.
The annual event usually takes place in Romford's Market Place with appearances from musicians.
At the switch-on last year, DJ Luck and MC Neat appeared as the headlining act, with Rozalla performing her 90s worldwide hit Everybody's Free.
However, budget cuts has meant the festivity will not be going ahead this year.
There will also be a noticeable lack of Christmas trees in town centres across the borough.
Cllr Ray Morgon, leader of Havering Council, told the Recorder: “In our last budget, because of the urgent need to make savings, the council sadly agreed it could no longer deliver Christmas lights and trees in our town centres.
"We have no choice due to the year on year government reductions in funding and the escalating costs in social care and homelessness.
“This includes the Christmas light switch-on in Romford."
The council advised that it would be working with the Romford Business Improvement District (BID) and town centres to help plan events or find sponsorship.
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BID director Julie Frost told the Recorder that its plans for Christmas are yet to be finalised.
But she said: "To be clear, this will not be a like-for-like replacement of the town centre lights and event that the council have found it necessary to cancel.
"The BID’s annual budget is made up from levy payments from the businesses and therefore I have to be mindful of the need to ensure value for money and a genuine return on investment for the businesses within the BID area."
The council's decision came in the midst of budget difficulties and other proposed cuts including library closures.
Earlier this year, the authority was granted a £54million loan by the government after it faced declaring itself effectively bankrupt.
The Local Democracy Reporting Service reported that Havering was allocated £21.2m for 2023/24 and a further £32.5m for 2024/25, but has not yet withdrawn any money from the government’s Public Works Loan Board (PWLB).
Officials are keen to delay borrowing for as long as they can, and finance director Kathy Freeman previously said she would “take a view” at the year’s end whether to draw from the fund.
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