GOOD Statement by Anton Louw ,
GOOD City of Cape Town Councillor
28 May 2025
Today, we mark an important, though partial, victory for the people of Cape Town. The City has released amendments to its Draft Budget. While the increases remain steep and significant challenges lie ahead, the initial changes are clear evidence that public participation works. These concessions, however limited, would not have been secured without the persistent efforts of Capetonians who stood up, spoke out, and demanded better.
Thanks to public pressure during the initial comment period, the amended Budget
2.0 includes tangible relief for some residents:
• Pensioner Rates Relief: The rebate threshold has been raised from R22,000 to R27,000 monthly income, offering overdue relief for older residents on fixed incomes.
• Rates Threshold Adjustment: The first R450,000 of property value remains tax-free, now for properties valued up to R7 million, up from R5 million.
• Cleansing Tariff Adjustments: Households in properties valued under R20 million will see a reduced cleansing charge, a direct response to the backlash against the regressive, property-linked tariff.
• Fixed Water Charges: Lowered for properties up to R25 million, offering modest relief for high-value but often multi-occupancy households.
While we are still combing through the fine print, early indications suggest that the steep increases tabled in the original draft have been tempered for some categories of ratepayers. However, the hikes still exceed inflation.
R1 000 000,00 – 4,25% Increase
R1 500 000,00 – 5,77% Increase
R3 000 000,00 – 8,29% Increase
R5 000 000,00 – 13,64% Increase
R7 500 000,00 – 16,57% Increase
*Based on 15mm water meter size, 30Kl consumption, 750KwH prepaid electricity consumption, 1 refuse bin.
This is a textbook case of people power in action. It shows what happens when communities mobilise, when residents challenge flawed assumptions, and when we insist on transparency and fairness in budgeting. But let us be clear – this is not the final chapter. In a sluggish economy, residents cannot be expected to absorb such steep increases.
These changes do not erase the fundamental flaws of the City’s approach. Especially the decision to link essential service charges to property value rather than actual usage. Nor do they address the broader issue of how the City continues to shuffle funds between tariffs while extracting record profits from electricity sales and new levies.
We reiterate our concerns:
• The Cleansing Tariff, even with tweaks, remains arbitrarily linked to property value.
• The overall municipal bill for many Capetonians will still rise significantly, even with today’s amendments.
We welcome every step toward fairness, but we will not mistake minor relief for full reform. Residents must continue to scrutinise this Budget, speak out during the new public participation window, and hold the City accountable for every rand spent.
Let’s keep pushing, for a budget that reflects the values of justice, equity, and shared responsibility.
The fight continues and we’re not going anywhere.
Media Enquiries:media@forgood.org.za