Jay Z's Made in America music festival, which was due to be headlined by Lizzo and SZA, has been cancelled.

The 53-year-old hip-hop legend's annual two-day music event is held every Labor Day weekend (September 2 and 3) on the Benjamin Franklin Parkway in Philadelphia, Pennsylvania.

However, the organisers made the "difficult" decision to pull the plug on this summer's event, with full refunds offered.

A statement read: “Due to severe circumstances outside of production control, the 2023 Made in America festival will no longer be taking place.

“This decision has been difficult and has not been made lightly nor without immense deliberation.”

Philadelphia’s spokesman Joy Huertas told CNN: “The City of Philadelphia was working closely with the festival producers throughout the planning process and we’re disappointed to hear the news.

“The City, along with our hospitality and tourism partners, look forward to bringing MIA back and bigger than ever next year."

Philadelphia’s Mayor Jim Kenney said: “I’m disappointed to hear that the 2023 Made In America festival will no longer be taking place.

"Since 2012, Made in America has grown into a Philly tradition on Labor Day Weekend celebrating music and promoting worthwhile social causes.”

No reason was given for the cancellation.

The festival being cancelled comes amid Lizzo’s sexual harassment scandal.

The pop star is facing a lawsuit from three of her dancers - Crystal Williams, Arianna Davis and Noelle Rodriguez - for alleged sexual harassment, creating a hostile work environment and discrimination.

Last week, Lizzo, 35, broke her silence on the allegations, writing on Instagram: "These last few days have been gut wrenchingly difficult and overwhelming disappointing.

“My work ethic, morals and respectfulness have been questioned. My character has been criticized. Usually I choose not to respond to false allegations but these are as unbelievable as they sound and too outrageous not to be addressed.

"The sensationalized stories are coming from former employees who have already publicly admitted they were told their behavior on tour was inappropriate and unprofessional.

“There is nothing I take more seriously than the respect we deserve as women in the world. I know what it feels like to be body shamed on a daily basis and would absolutely never criticize or terminate an employee because of their weight.

“I’m hurt but I will not let the good work I’ve done in the world be overshadowed by this. I want to thank everyone who has reached out in support to lift me up during this difficult time. (sic)”