The popular annual event was due to take place in its regular place at the Forest Recreation Ground on 5 November.
This years display would've been the first in three years, after being cancelled during the pandemic.
But Nottingham City Council says it's "reluctantly" taken the decision to cancel the event, as it's facing 'huge budget difficulties" which have been 'exacerbated by rising inflation and energy costs.'
The council says it's made the decision to cancel the free event, which it runs alongside The Mellor Group, because it now faces a growing budget gap next year.
But, other events, including Winter Wonderland are still going ahead.
Councillor Pavlos Kotsonis, Portfolio Holder for Leisure, Culture and Planning at Nottingham City Council, said: “We know the Bonfire Night event at The Forest is really popular with many people and we were so keen to run it this year after two years away due to Covid.
“We are not happy that the event had to be cancelled again.
"Unfortunately it’s one of the difficult decisions we had to take as we face increases in energy and prices in the broader economy.
"We were however really pleased to have had an extended ten-day Goose Fair which brought a lot of enjoyment to Nottingham families.
"The much-anticipated Christmas market will also be going ahead at no cost to the taxpayer.”
James Mellors of the Mellors Group said: “I understand the council’s position on this and I’m fully in support of them cancelling it for this year.
"It feels such a shame after doing this for over 30 years but these things have to be done under the present climate. We hope to work with the council to put on a bigger and better event next year.”