The annual Mansion House dinner for City grandees planned for Thursday night, due to include high-profile speeches by the chancellor and governor of the Bank of England, has been cancelled following the devastating fire at Grenfell Tower in west London.

The chancellor, Philip Hammond, postponed his speech after concluding it would be inappropriateat this time to address the hundreds of bankers, fund managers and policymakers at the black-tie dinner.

He had been expected to use his first annual address at the City event to call for a more “business-friendly” approach to Brexit.

In view of the Grenfell Tower tragedy, I have withdrawn from giving the Mansion House speech tonight. My thoughts are with local community. — Philip Hammond (@PhilipHammondUK) June 15, 2017

The City of London Corporation announced that the event was being cancelled, almost an hour after the chancellor tweeted that he would not deliver his much-anticipated speech.

Hammond tweeted that he was pulling out just as prime minister Theresa May was announcing a full public inquiry into the fire in the 24-storey tower block in the borough of Kensington and Chelsea where 17 people are known to have died. Many more people remain missing.

The prime minister and the Labour leader, Jeremy Corbyn, have visited the site of the fire.

Bank of England governor Mark Carney speaks at the 2014 Mansion House dinner. Photograph: Peter Macdiarmid/Getty Images

At the Mansion House event, Mark Carney, the Bank of England governor, was expected to talk to the audience about the importance of international trade, just days before the start of Brexit talks next week.

Hammond had been expected to warn against the dangers of a hard Brexit and, according to reports, to urge the prime minister to put the economy at the heart of the EU exit talks.

The lord mayor of London, Andrew Parmley, had been planning to discuss the importance of Brexit, calling for a bespoke agreement with the EU to ensure the financial sector would thrive after the UK left.

A City of London Corporation spokesperson said: “In the light of the tragedy at Grenfell Tower we are cancelling tonight’s Mansion House dinner. Our thoughts are focused with the victims and their families and friends.”

The Bank of England said: “Out of respect to the victims, families and friends of all those affected by the Grenfell Tower tragedy, the Mansion House dinner has been cancelled this evening. The governor’s speech will be given in due course.”

Last year, Hammond’s predecessor, George Osborne, had to alter the speech he had intended to deliver following the murder of the Labour MP Jo Cox.

The Mansion House dinner is the biggest event that takes place in the 250-year-old building, which is the official residence of the mayor during the year in office.

The chairs and CEOs of all the big banks usually attend. Known as the bankers’ and merchants’ dinner, it is an event noted for its pomp and ceremony. High-profile guests are clapped as they proceed to the top table and there are a number of traditional toasts.

The cancellation of the dinner is thought to be the first in at least 35 years.

The food due to be consumed at the event is understood to have been donated to a local fire station on the advice of the British Red Cross.