Cape Town Mayor Geordin Hill-Lewis has called on Finance Minister Enoch Godongwana to shield municipalities from any further budget cuts when he delivers the National Budget on Wednesday.
However, the appeal has triggered a fierce backlash from opposition parties, which accuse the Democratic Alliance (DA)-led city administration of hypocrisy and fiscal double standards.
In a statement, Hill-Lewis warned that balancing the national budget should not come at the expense of municipal infrastructure grants or service delivery allocations, particularly when these underpin essential services in cities.
“There is more than enough waste and excess that can be cut in national government to balance the Budget, and we are absolutely opposed to any cuts being passed down to municipalities,” he said.
Hill-Lewis pointed out that R107 million was slashed from Cape Town’s grant funding for the 2023/24 financial year as part of nationwide fiscal tightening.
Despite the reductions, the city claims it has consistently spent at least 99% of all grants since 2020, mainly on upgrading informal settlements and subsidising free housing.
The mayor also reiterated his call for a fairer Equitable Share allocation, based on updated census data that shows Cape Town is on the verge of surpassing Johannesburg as the country’s most populous metro, with nearly five million residents.
“For Cape Town to sustainably deliver free basic services to the poorest, it is vital that our metro receives a fair Equitable Share aligned to our growing population,” Hill-Lewis said.
“When national funding dwindles, property rates have to make up for it.”
He also called on Godongwana to honour President Cyril Ramaphosa’s SONA 2024 promise to create new infrastructure funding streams for municipalities.
Cape Town plans to invest a record R39.7 billion in infrastructure over three years, 75% of which is earmarked for lower-income areas.
However, critics have dismissed Hill-Lewis’s appeal as disingenuous.
Economic Freedom Fighters (EFF) councillor Banzi Dambuza labelled the mayor’s stance “puzzling”, accusing the DA of using the same exploitative tactics it condemns in the ANC.
“We see a double standard. The DA is very quick to point fingers at the ANC, yet they do the same to the people of Cape Town. They push through budgets that hurt the working class and then blame the national government,” Dambuza said.
“People must start removing both parties. Only then can we fix this country and the municipality.”
Freedom Front Plus councillor Paul Jacobson echoed similar sentiments, highlighting widespread dissatisfaction with the city’s proposed 2025/26 draft budget, which includes a 10% escalation in tariffs and additional fixed charges.
“Someone earning R7,500 a month or owning property worth R500,000 will face expenses they haven’t budgeted for. This budget burdens the middle class while the city mismanages money and takes on unnecessary loans,” said Jacobson.
“Last year, we had R200 million in projects and only spent 50% of that. Meanwhile, disadvantaged communities are left behind.”
National Coloured Congress (NCC) president Fadiel Adams described the DA’s plea to Treasury as “more than a bit hypocritical”, saying the party is pushing working-class communities to the financial brink.
“In Camps Bay, a flat worth R8.7 million pays R1,000 per month in rates. In Grassy Park, a property worth R1.3 million pays the same. How is that fair?” asked Adams.
“The only taxes that need to go up are those for the rich. But the DA will never tax their core base. Instead, they punish the poor. The mayor should hang his head in shame.”
GOOD Party councillor Anton Louw also criticised the mayor’s budget rhetoric, saying it contradicts the city’s own regressive policies.
“While Hill-Lewis pleads for fairness from national government, his own administration is pushing a budget that hits the poorest the hardest,” said Louw.
He cited:
- A nearly 10% rise in monthly bills for indigent households, despite inflation sitting at just 2.7%.*
- A new Cleaning Levy based on inflated property values.
- A R4.7 billion electricity surplus and R2.45 billion expected from the Cleaning Levy in the 2025/26 financial year.
“Tariffs are increasingly linked to property values rather than usage, removing any ability for low-income households to reduce costs,” Louw said.
“Despite all the infrastructure investment claims, the city has failed to spend its full capital budget for the past three years.”
