City of Cape Town doubles spending, adds rates relief for most households

SK

Sara-Jayne Makwala King

1 April 2026 | 9:29

The City’s latest spending plan promises major infrastructure investment while aiming to ease pressure on households.

City of Cape Town doubles spending, adds rates relief for most households

City centre of Cape Town, South Africa. Wikimedia Commons/Discott

Cape Town Mayor Geordin Hill-Lewis has unveiled a R13 billion budget for the city, the last of his administration.

Dubbed the 'City of Hope Budget', it is more than double the metro’s spending compared with the start of his term in 2021.

Speaking on CapeTalk, Hill-Lewis said the budget aims to build "a place where many more people can live with dignity and independence, and without the fear of poverty and unemployment as a constant shadow over their lives."

He also highlighted the size of the budget compared to other large metros in the country. “As has been the case for each of the last few years, our capital budget remains higher than the three Gauteng metros combined.”

ALSO READ: CoCT budget delivered biggest infrastructure investments in SA: Hill-Lewis

A significant portion of the funding is set aside for water and sanitation, with billions earmarked for infrastructure upgrades over the next three years.

“Those major infrastructure projects all result in better service delivery, more reliable services, and certainly, in the case of pipe replacements and drain replacements, pump station replacements, it results in much more dignity."

The budget also proposes lower property rates, with around 60% of households expected to see no increase, and some even a decrease.

Hill-Lewis says the increase to the rates rebate for all homes valued up to R8 million is designed to soften the financial blow on residents.

"It used to be down at R5 million... so what that means is if you live in a property up to R8 million value or less, you get the R500 000 rates rebate per year.

"We've introduced various rebates for properties up to R1.2 million, those are people starting, getting their first place, moving out of their parents' home and a range of service charge discounts for properties up to R1.2 million."

ALSO READ: CoCT property rates: 60% of households to see relief despite valuation growth

To listen to Geordin Hill-Lewis in conversation with CapeTalk's Lester Kiewit, use the audio player below:

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