City defends steep proposed property rates hike in Cape Town

Opposition says homeowners across the board will be hit hard in the pocket

24 April 2025 - 18:48 By Kim Swartz
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The city proposed a draft budget for 2025/2026 which included a 7.96% increase in property rates for residential, commercial and industrial properties effective from July 1. Stock photo.
The city proposed a draft budget for 2025/2026 which included a 7.96% increase in property rates for residential, commercial and industrial properties effective from July 1. Stock photo.
Image: 123RF/INSTINIA

The City of Cape Town on Thursday moved to assure irate ratepayers — fuming over steep new proposed property rates and infrastructure charges — their money would be spent on much-needed services for all residents.

The city proposed a draft budget for 2025/2026 which included a 7.96% increase in property rates for residential, commercial and industrial properties effective July 1 — aimed to fund infrastructure projects and enhance public services. 

Other proposed increases include setting fixed charges to receive a supply of water, electricity, sanitation (and a new city cleaning tariff) according to the value of individual properties — instead of the standard charges rolled out previously. Observers pointed out that escalating property prices in the city could see more expensive properties hit with 20%-30% hikes for services.

During a full council meeting on Thursday several councillors raised concerns about the proposed hikes in store for Capetonians by the DA-run city, the party that vigorously opposed a VAT hike, arguing it would hurt households and the poor.

Freedom Front Plus (VF Plus) councillor Pieter Jansen van Vuuren asked if anything would be done in the future to shield middle and higher income groups from onerous rates and tariffs.

“It is this group that carries a massive portion of this city’s ... budget and carries a huge portion of the city’s efforts across all demographics and many suburbs in the City of Cape Town,” said Jansen van Vuuren. 

Acting mayor Eddie Andrews responded, saying the city thanked all ratepayers funding its integrated development plan (IDP) which outlined the municipality’s strategic objectives and financial planning. 

“What you see now in the budget is a continuation of that commitment ... and we thank every single resident because we are all partners contributing towards that outcome, to ensure that we offer those who are more vulnerable a lot more opportunities for housing and to serve them in a more dignified manner,” said Andrews. 

“What we are saying to the public: ‘Your money is safe with us, we have a plan — we know how we are going to spend so there is no mismanagement’ ... every member of the city helps us shape that shared future.” 

GOOD councillor Axolile Notywala criticised council speaker Felicity Purchase for defending “hypocrisy and lies” from mayor Geordin Hill-Lewis and the party on the proposed budget and service delivery failures. 

The GOOD Party, and in particular GOOD councillor Anton Louw has on numerous occasions highlighted and spoken against the DA’s hypocrisy of speaking out against high rates and tariffs in Johannesburg and Tshwane, while introducing high rates and tariffs in Cape Town,” said Notywala. 

“The mayor stood here in our last council meeting defending these illogical increases in Cape Town ... The mayor, and DA councillors, have since 2021 governed with arrogance and ignored the cries of pensioners and ratepayers in places such as Mitchells Plain, Strand and Bonteheuwel and many others, by continuously voting for budgets that hit hard at the pockets of some of the most vulnerable in our society.

“The proposed increases will hit hard at the pockets of Cape Town homeowners across the board. Will the DA listen?” 

African Christian Democratic Party (ACDP) councillor Demetrius Dudley said he attended a ratepayers' meeting on Wednesday where many residents expressed disappointment with the city over the increases. 

Andrews responded saying two-thirds of the province lived in Cape Town and services needed to be sustained. “We are paying to ensure we are more responsive as team Cape Town ... the rates have been increased because we need to fund the budget and pay for the services,” he said. 

Africa Restoration Alliance (ARA) councillor Grant Claasen said, “Service delivery delayed is service delivery denied ... please give us assurance, we cannot afford to wait for services where people are crippled by the weather situation that is going to hit us [in winter].”

Residents were encouraged to participate in the budget consultation process. Comments on the draft budget and proposed rates increase can be submitted until May 2 via:

  • Email: budget.comments@capetown.gov.za
  • Online: www.capetown.gov.za/HaveYourSay

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