The decision has been made to cancel the event due to the new Omicron Covid variant that is spreading quickly throughout the UK.
Questions are still being put to officials over claims a party was held at Number 10 last year, despite tough restrictions being in place.
The man in charge of their communications - Jack Doyle - is understood to have been there.
But Sky's political editor Sam Coates says officials are leaping to his defence:
"Apparently Jack Doyle staying in his job despite no dispute that Jack Doyle handed out awards and gave a speech to staff on December the 18th 2020, at whatever you want to call the event involving, alcohol, that lasted into the early hours of the morning."
