The town's Remembrance Sunday proceedings have also been cancelled, with the town council working on helping people in the town mark the occasion virtually.
The Christmas lights will still be present in the town, but no special switch on event will be going ahead.
Town clerk Gina Wilding said: "Social distancing is important to keep everyone safe, so Ludlow’s Christmas lights will be put up late afternoon and into the evening to help the workforce avoid restricting space for the public on Ludlow’s narrow pavements and streets.
"Sadly, there is no switch-on event this year. The plan is to get all the lights up, including the Tree of Light in Castle Gardens, by the end of November."
She added: "Remembrance Sunday cannot take its normal form because of the Covid-19 restrictions, and there will soon be news of a how to get involved virtually on Sunday 8th November at Ludlow Town Council’s website ludlow.gov.uk."
In more positive news, the council is hoping to spread Christmas cheer to the elderly with free gift bags, and youngsters are invited to take part in a drawing competition.
Ms Wilding added: "Adapting to changed circumstances has been the way forward in 2020, and as the year draws to a close, there are further adaptations for festive celebrations and commemorations.
"Spreading Christmas cheer to Ludlow’s senior citizens is a priority in 2020 - this year we will deliver free festive gift bags with festive snacks, decorations and tipples at the beginning of December.
"Ludlow Town Council is inviting school children to enter a Christmas picture drawing competition, and the entries will be delivered to Ludlow’s senior citizens in their festive gift bags.
"Senior citizens who live in Ludlow, and wish to receive a festive gift bag should contact Ludlow Town Council on 01584 871 970, or email email@example.com by Friday, November 13."
Ludlow’s first Christmas gift markets are on November 28 and 29, and other festive markets include Tinsel Tuesdays in December. Ludlow market will be trading seven days a week in December, including the regular weekday markets, local produce, and antiques markets. Traders have been asked to wear visors and provide hand sanitiser for customers.