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The Fine Art of Making You Pay More Whilst Telling You You’re Paying Less

While proclaiming to do the opposite, the City of Cape Town 2026/27 budget contributes to a growing unaffordability crisis for working and lower middle-class communities through a fundamentally unfair system of tariffs.

The post CITY OF CAPE TOWN’S BUDGET OF DECEPTION STOKES UNAFFORDABILITY CRISIS: THE FINE ART OF MAKING YOU PAY MORE WHILE TELLING YOU YOU’RE PAYING LESS, ON THE EVE OF A CORONATION appeared first on For Good.

GOOD Statement by Sandra Dickson, GOOD City of Cape Town Councillor:

While proclaiming to do the opposite, the City of Cape Town 2026/27 budget contributes to a growing unaffordability crisis for working and lower middle-class communities through a fundamentally unfair system of tariffs.

Many Capetonians will have heard the “good news” that the City has lowered their rates burden and believe this will lead to a reduction in their monthly bills from Council.

Simply put: It’s not true.

The City has technically reduced its residential rate-in-the-Rand formula, but increasing property valuations at the same time means it’ll still take nearly R1 Billion extra this year.

In addition, the City has has more than compensated for any perceived “savings” by shifting and increasing residents’ cost burdens elsewhere:

  • The Base Fixed Charge for electricity has increased by more than 68% over the past two years.
  • Because the value of Cape Town property consistently exceeds the rate of inflation, linking the fixed charge for water and sanitation to property values (rather than actual consumption) guarantees the City of an above-inflation water tax injection each property valuation cycle.
  • The cleaning tariff increase of 3.75% appears reasonable – for now. But the devil’s in the detail with massive double-digit increases over the next two years.

These charges more than compensate the City for the “generosity” of its decision that the first R500 000 of a property value will be rates-free. It’s a well packaged case of making up at the roundabouts what is lost at the swings.

The bottom line is that the substance and timing of Cape Town’s budget were carefully curated, using the Easter Weekend break to diffuse potential controversies, to create the best possible impression before the coronation of Cape Town Mayor Geordin Hill-Lewis as the national leader of his party at the DA’s elective conference next week.

But lies have short legs. There’s plenty time between now and the local government elections towards the end of the year for Cape Town residents to study their Council bills for the City’s alleged budgetary “gifts” and reach their own conclusions.

Given the gulf of inequality in Cape Town, charging rich and poor citizens similar fixed tariffs for basic services – regardless of how much they consume – is to do the opposite of what Robin Hood did: It is to take from the poor to maintain the privileged lifestyles of the rich.

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