City of Cape Town budget faces backlash over proposed tariffs

A municipal public law expert says the City of Cape Town has a duty to ensure its tariffs don't leave households facing poverty. 

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

Civil society activists argue that rising property valuations mean homeowners will collectively pay nearly one billion rand more in rates this year. 

The city 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. 

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Municipal law expert from Stellenbosch University, Professor Zwelinzima Ndlovu, said the city has a responsibility to ensure its rates are manageable. 

"They ensure that they do not collect revenue or charge in such a way that would make their citizens struggle and not be able to pay for the services."   

Activists argue the city's fixed tariffs, applied to wealthy and poorer households, place a burden on homeowners who struggle to pay. 

However, the city insists low-and middle-income households benefit from the fixed charges, with lower-value homes paying less.