Leicester's Pride festival which has been held every year since 2001 will not go ahead this summer.
The celebration held by Leicester's lesbian, gay, bisexual and transgender community was due to be staged on 23 June this year.
But organisers say they are disappointed the event cannot go ahead because of a lack of cash and volunteers leaving the area.
In 2006 the festival had to be scaled down for financial reasons.
The event is usually responsible for about 10,000 people visiting the city.
A parade of floats travelled through city centre streets to Victoria Park in previous years.
Other outdoor events in Leicester have suffered because of insufficient funding, with the Caribbean carnival and the Mela both being cancelled in 2006.
The Caribbean carnival has been revived and will be held on 4 August this year.