The orgainser says it has not been able to secure the financial commitment needed to make September's race viable.
It is not yet known whether the events planned to run alongside the race will go ahead.
In a statement, P1 SuperStock UK said: "Due to significant financial concerns around its Scarborough event, Powerboat P1 has announced that it will not be going ahead with the SuperStock UK race weekend in Yorkshire at the beginning of September.
"P1 has visited Scarborough on two previous occasions and, although there has been some financial support at local level, sufficient institutional and commercial income for the 2017 event has simply not been forthcoming to offset the event costs.
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"The company believes that it would not make commercial sense to run the race event – or any of our other events – at a significant loss. Whilst P1 has at times invested in new events, an event in its third year should be commercially viable.
"A loss-making event deprives the business of funds that can be better used for the development of the P1 SuperStock Championship in future years.
"P1 has looked at a variety of possible funding solutions with the local Council but it is simply not in a position to provide the additional support that is needed. P1 has informed the Council of its decision and, while they too are disappointed, they fully understand the reasons behind the decision.
"P1’s hope is that in the future an agreement can reached with Scarborough Borough Council and various local commercial partners to ensure a sustainable and financially viable event on the calendar for many years to come."