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City of Cape Town tables ‘Invested in Hope’ Budget to opposition doubt

As the deadline for public comment on Cape Town's draft budget approaches, the city's "Budget of Hope" faces a reality check, with critics arguing that while it aims to uplift the poor, it simultaneously tightens the financial noose around the working class with rising levies and property rates.
City of Cape Town tables ‘Invested in Hope’ Budget to opposition doubt Illustrative image | Electricity meter box (Photo: Gallo Images / Misha Jordaan) | A resident of Cape Town holds a poster, protesting against high electricity tariffs. (Photo: Gallo Images / Brenton Geach)

With the 2 May 2025 deadline looming for public comment on the City of Cape Town’s draft 2025/2026 Budget, organisations and political parties have added their voices to the “Budget of Hope”. 

“For the poor, it’s a budget of hope,” said Sandra Dickson, a member of the Stop Coct, a lobby group that aims to keep accountability around the City’s affairs. 

Mayor Geordin Hill-Lewis tabled the draft budget during a dramatic council sitting on Thursday 27 March in which African National Congress (ANC) caucus leader Banele Majingo revealed he had resigned from his party to join the Democratic Alliance. 

Read more: Cape Town politics shift: ANC’s Banele Majingo joins DA, foiling no confidence motion

On Friday, Dickson confirmed the lobby group would be attending public hearings and writing submissions around the Budget, which Hill-Lewis described as an “Invested in Hope” Budget.

Dickson told Daily Maverick: “For the poor, it’s a budget of hope,” but for those who did not fall into indigent categories or were working class, it was a budget of despair over increases in levies this year. 

At the time, Hill-Lewis said the Budget was so named because at this point, “We are fully invested in building a city of hope for all.”

The Budget, according to Hill-Lewis, was a “tricky balancing act”. The mayor said: “You need to find a balance between the limitations on your sources of funding — in our case, rates, tariffs, grants, borrowing and other revenue we collect — and the necessary investments needed for a fast-growing city like Cape Town, which is about to cross the five million mark to become our country’s most populous city… You also need to find a balance between the many competing priorities in the city, many of which make convincing and competing cases for increased funding.” 

The mayor added: “In the case of our city, the biggest balancing act is between our bold plans to build the Cape Town of the future — the city that we know will be able to handle the substantial growth that is headed our way — and the need to shield our most vulnerable residents from the enormous financial pressures that make their daily lives very hard.” 

Hill-Lewis then said: “And we remain committed to doing so with the utmost respect and understanding for our ratepayers,who are all experiencing their own pressures in balancing their own household budgets every month.”

Priority spending

Some of the City’s priority spending includes a three-year investment of R16,6-billion allocation around water and sanitation, with the department getting a boost of R5-billion this year. 

Other planned spending includes a budget of R6,7-billion for safety and security — including the insourcing of security staff, which would allow teams to assist in cases of attacks on frontline staff who work under pressure due to rising threats of violence and extortion. 

On the other hand, there is a downside to all these plans: higher property rates. 

Hill-Lewis said: “In the context of all these investments, we hope ratepayers will understand the slightly above-inflation property rates increase of 7.96% to cover the major growth in more policing resources for a safer CapeTown — accounting for a third of every rand paid in property rates — as well as the major infrastructure investments in roads and community amenities.” 

Dickson and Stop Coct released their statement to point out some of their concerns around the Budget, including levies. 

“The long despised ‘Pipe Levy’ is now replaced by linking property value to the fixed portion of the water tariff. This resulted in a hefty increase for the fixed charge on water consumption for properties valued at more than R1.5-million. This table is simply skewed to nail every household with a property value of more than R1.5-million.  Not to mention that the City determines the value of properties,” reads their statement. 

Political parties in the council also added their voice to the draft Budget.

Good party councillor Anton Louw said: “This is not a budget invested in hope, it is full of despair and concern for Cape Town residents who are struggling to make ends meet. Cape Town is becoming unaffordable to Capetonians.”

ANC metro regional chairperson Ndithini Tyhido — who will shortly take up a seat in the party’s city caucus — told journalists on Friday that the Budget that was tabled, particularly when it came to the amounts allocated to safety and security (which includes the use of more technology to fight crime), was just for “self-aggrandisement, and not being used to effect a safer Cape Town”. DM

Comments (10)

megapode Apr 4, 2025, 03:13 PM

Wow! They give an actual breakdown of how the City spends the money you pay for various services.

Louise Wilkins Apr 4, 2025, 03:13 PM

Having moved to CT 3 years ago, I am constantly impressed by the way CT is run. Geordin Hill-Lewis knows what he's doing and every other city could learn from his example. The roads are clean, services occur as expected, drains are cleared, roads are painted, street lights are on, traffic lights work, potholes are fixed. He is transparent and provides useful information. He is constantly assisting the poor, and I mean constantly. Follow him and see for yourself. He is a great example.

megapode Apr 4, 2025, 03:16 PM

You know what I would like to see, especially from the parties that claim to represent or care about the poor, is to not just oppose because it's from another party, but see what they can support, what matches their values, and propose alternatives. As for the comment that it's a budget of hope for the indigent, well isn't that part of the point of paying taxes? To have a more decent society?

gfogell Apr 6, 2025, 11:29 AM

I once had a manager whose philosophy was, "Don't bring me problems! Bring me solutions".

- Matt Apr 4, 2025, 04:21 PM

I love living in Cape Town & I really appreciate both Geordin Hill Lewis and DA leadership. BUT, to his point, the money needs to come from somewhere. My personal costs will increase by 17% this year. That is a factor of 4.25x what my salary increased by, i.e. unsustainable. The issue is the rates increase, the ever increasing of property valuations and the connection fees for utilities (elec, water, sewage) and that these are all based on property value. We will soon be priced out of our homes

keith.ciorovich Apr 4, 2025, 06:07 PM

We pay rates and get nothing but pot holes, sewerage spills, burst water pipes and a filthy town. Count yourself lucky

Vikki.loles Apr 5, 2025, 07:38 AM

So disappointing to see the share of funding for law enforcement, and the claim it makes us safer - with no supportive evidence. Study after study proves what actually reduces crime: better social services and better paying jobs.

Rae Earl Apr 5, 2025, 08:24 AM

Hey you Capetonians who complain about your city's council, came and take a look at the state of Johannesburg and Pretoria, both run by the ANC. They'll blame their coalition partners but no matter, they hold majority and they choose their partners. Both these cities and another two hundred around SA are stagnant heaps of despair and failure. The hotel industry in Durban is dead on its feet and the major players there are relocating to other resorts. Cape Town is a jewel. Take a bow DA!

gfogell Apr 6, 2025, 11:32 AM

We travel to Joburg from time to time, and I've also had to go to Pretoria to run a course there. Having lived in Joburg for 17yrs until 2000 and then migrated to CT, I'm horrified by the state of these cities and dread the necessary trips. Damaged roads, unkempt verges, traffic signals not working much of the time, water and power outages for extended periods. Cape Town just keeps on working.

Brian Schultz Apr 5, 2025, 09:12 PM

What an absolutely disgracefully biased article trying to convey that Cape Town is somehow doing the wrong thing to its residents. Those living elsewhere in our country look on in amazement that a city actually works in SA; theirs do not. The only council that works in Gauteng is Midvaal. Guess what? it's also DA run. Sune you should be ashamed of yourself.

Dagmar Timler Apr 6, 2025, 01:24 PM

If CoCT needs more money for infrastructure upgrades due to increased population density surely it’s up to property developers to pay more?

Dagmar Timler Apr 6, 2025, 01:24 PM

If CoCT needs more money for infrastructure upgrades due to increased population density surely it’s up to property developers to pay more?

megapode Apr 7, 2025, 09:45 AM

Would that make a difference to our pockets? The property developers would pass the costs on to the purchasers. Also that would be a once-off payment for a new substation or access road or whatever. Going forwards the new - and the existing - infrastructure will require maintenance.

megapode Apr 7, 2025, 09:45 AM

Would that make a difference to our pockets? The property developers would pass the costs on to the purchasers. Also that would be a once-off payment for a new substation or access road or whatever. Going forwards the new - and the existing - infrastructure will require maintenance.