Richmond Town Council believe that the North Yorkshire Police decision is a 'blow' for small Remembrance Day parades.
A full council meeting was held to discuss the letter from the police and decide whether events should still go ahead.
The decision was made that the council will have to pay for a traffic management company on the day.
Due to the late announcement of this change, the council has not had the opportunity to budget accordingly.
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A Richmond Town Council spokesperson said: "At their July Full Council meeting, Richmond Town Council discussed the contents of a letter received from North Yorkshire Police.
"The letter dated 13th July 2023 was to inform us that, with immediate effect, North Yorkshire Police would no longer be supporting the community by managing the traffic during the road closures for the Remembrance Day Parade.
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"The cost of a traffic management company (which is a legal requirement) would have to be paid in future by Richmond Town Council.
"Richmond’s annual Remembrance Day Parade is a large and important event and very well supported and appreciated by the community, supported by our strong links to the nearby Garrison."
It is likely to cost an average of £1,500 per parade across the county.
The spokesperson added: "The discussion and vote at the Full Council meeting agreed that the Parade should go ahead, with the cost being taken from taxpayers' reserve.
"The Parade is a vital annual event and it is important that we as a community pay our respects to those who gave their lives in all conflicts.
"This is a blow to all Parades as traffic management will now be required and depending on the size of the parade is likely to cost an average of £1,500 plus VAT.
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"The lack of notice of this change also means that Towns and Parishes have not been able to budget ahead for this cost which will impact quite heavily on some Councils and perhaps threaten the continuance of the Parades for some."
Going forward the town council is writing letters to their MP Rishi Sunak, the Chief Constable of North Yorkshire Police and also to the Police and Crime Commissioner.
The council are frustrated at the lack of notice they were given before this decision was made.
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