Cape Town's 2025/2026 budget faces backlash from residents and civic groups

IOL News

3 days ago

Mayor Geordin Hill-Lewis
Image: Supplied
Cape Town's newly adopted 2025/2026 'Invested in Hope' budget has been met with strong criticism from civic organisations and residents, who warn that the latest increases could disproportionately burden low- and middle-income households.
Sandra Dickson, chairperson of STOP COCT, said the City had 'bluntly ignored' key objections raised during public participation. 'STOP COCT is deeply disappointed with the Mayor's flat refusal to address the homeowners' real concerns which is the rejection of the introduction of the Fixed Charges, the link to property values and the above inflation increases,' she said.
'If one look at the increase in total municipal accounts, it is only properties up to the R1.5 million mark that will receive increases resembling the current inflation rate. From R1.5 million properties upwards, the total increase is double inflation and above R3 million the increase is in double digits.'
STOP COCT flagged the 7.96% increase in the rate-in-rand, along with multiple new fixed charges. 'This is exacerbated by the 38% increase in the fixed charge for electricity for the Home User category and the new fixed charge of R59.90 for the Domestic category. The new sanitation fixed charge and the new Cleaning Charge brings the total of new fixed charges on a municipal bill for a property of R1.5 million to almost R300 per month with no additional services provided by the City.'
Despite submitting objections through their members, Dickson said residents were ignored. 'The general objection was against the 4 fixed charges and the link to property values. This is still intact in the approved Budget. Therefore the City bluntly ignored our objections.'
She confirmed that STOP COCT, along with SA1STForum, is exploring legal action. 'SA1STForum and STOP COCT is currently busy with fundraising to pay for legal council to challenge aspects of this Budget in court. Afriforum indicated that they are looking to launch legal action as well.'
Bas Zuidberg, interim chairperson of the Cape Town Civic and Ratepayers Association (CTCRA), said while the City appeared to make some concessions, they were largely cosmetic. 'While CTCRA was initially pleased that the City appeared to have listened to the thousands of comments and announced relief measures in their updated budget, our conclusion is that these measures do not address our fundamental points of dissent.'
'As CTCRA we are also of the opinion that every homeowner should pay for their utility connections out of principle, however small the contribution, since 'what is not paid for is not valued'. These three measures could have avoided the need to tie the fixed charges to property values, something which we reject as unfair, disproportionate, and potentially illegal.'
He added, 'Commercial properties were exonerated from this cleaning charge for an additional year, which feels very unfair. Why did they get this extension and not the residential properties? We have not heard any argument for this that make sense.'
The City of Cape Town has been criticised by civil organisations over their budget plans
Image: Unsplash
CTCRA was actively involved in public participation, helping mobilise more than 50 ratepayers' associations. 'It feels particularly frustrating to hear City say that they listened to the public and amended the budget accordingly, because that is clearly not the case. If they had truly listened they would not have tabled the budget in this form.'
Zuidberg said CTCRA is consulting with other civic groups about legal options. 'The fury amongst the ratepayers is pronounced and people are actively encouraging us to mount a legal challenge, but this is not a venture to be taken lightly.'
He called on residents to take civic action. 'Members of the public who are angry at this budget should write to their ward councillors, the party leadership they vote for and the Mayor.'
'CTCRA still believes this budget can be undone and we remain open to constructive dialogue with all stakeholders to back up this belief. It is never too late to fix a mistake, because that is what we believe this budget to be.'
The City of Cape Town has defended its budget amid public outcry, emphasising that it balances long-term infrastructure investment with social support.
It explained the R40 billion, three-year infrastructure plan includes major upgrades to transport, water, sanitation, policing, and informal settlements. According to Mayor Geordin Hill-Lewis, the budget 'asks a little more of those who can afford it' while safeguarding essential services for vulnerable households.
Key relief measures include increased rebates for pensioners, expanded debt write-off schemes, and revised fixed charges that, according to the City, reduce costs for 200,000 homes under R2.5 million in value. The Mayor insists the fixed charges linked to property value are a fair way to ensure wealthier households contribute proportionately more, maintaining cross-subsidisation.