The British National Party's annual Red White and Blue Festival will not be held in Derbyshire this year, the party has announced.
Concerns about costs of up to £1m to police the event and disruption to local people prompted the decision, a spokesman said.
The event, which has been held in Denby in August for three years, attracts hundreds of protesters.
Last year 200 officers policed the event and made 19 arrests.
Party leaders are considering replacing the festival with several smaller events around the country.
A spokesman said: "We felt it was unfair the cost of policing could have risen to £1m due to agitators.
"We have been thinking about regionalising the event for a while."
A Derbyshire Police spokesman said the force had not been officially informed of the event's cancellation.
They added: "It does require quite a large operation that last year cost £500,000, and if the festival is cancelled that money can be spent elsewhere."