Parts of the Festival of Christmas, which was due to be held last Wednesday, had to be cancelled due to the bad weather.
Some of the outdoor elements of the festival were dropped due to the predicted torrential rain and high winds.
The fairground rides, outdoor stalls and the street entertainment were cancelled ahead of the event.
Pocklington Town Council said that all the stall holders would be refunded following the decision.
The move has angered a number of businesses and voluntary organisations in Pocklington, who took to social media to air their views.
All Saints Church still hosted Santa’s grotto with a number of town-based charities and groups also manning stalls in the church.
The Pocklington Town Council said: “The fairground, market stalls and out street entertainment had to be cancelled due to the expected dreadful weather.
“We do not take these type of decisions lightly, they are based on health and safety grounds. The late night shopping went ahead as planned and Santa’s Grotto in All Saints Church took place.
“A number of local organisations which would have had outdoor stalls, such as The Brownies, Friends of the Pocklington Arts Centre, The Pocklington Lions and the Rotary Club were relocated to the church.
“We can understand there may be frustration about this decision but everyone at the council is also disappointed with the situation. It takes a lot of organising.”