The event was due to take place on Friday 11 September, the 25th anniversary of the September 11 terrorist attacks.
Oldham Reform UK said its councillors raised concerns with the council about holding the event on the anniversary of the 2001 attacks.
In a Facebook post, the party's Oldham branch described the timing as “utterly insensitive”.
The September 11 attacks were carried out by Al-Qaeda in the United States in 2001.
Oldham Reform UK said the anniversary remained particularly sensitive for people who served in Afghanistan and the families of military personnel who did not return home.
The party also referred to those who were killed in the September 11 attacks.
It said Oldham Council had now cancelled the planned event and lighting of the building.
Oldham Council has been approached for comment.
