City of Cape Town budget slammed for being deceptive & unaffordable

The City of Cape Town's proposed 2026/27 budget is being criticised as deceptive and unaffordable for working-class and lower-middle-income residents. 

Social justice activist Natasha Gertze said while the city has announced a reduction in the residential rates-in-rand, increased property valuations mean homeowners will collectively pay nearly R1 billion more in rates this year. 

Gertze argues that any perceived relief has also been offset by sharp increases in other fixed charges.

Gertze said electricity base charges have risen by more than 68 percent over the past two years, while water and sanitation fixed charges remain linked to property values rather than usage. 

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Gertze said increased property valuations mean residents will have to fork out more for rates.

"With the valuation, if your property is valued at R500, 000, you are paying for water, you're paying for electricity on the domestic tariff, which means you don't get free units, you don't get free water."     

The city, however, insists that about 60 percent of households will see a rate decrease or no change at all in the new municipal budget due to a proposed reduction in the property rates formula.