Cape Town's budget has sparked controversy, with critics arguing it does not address the city's pressing issues of affordability, housing, and jobs. In an open letter to Mayor Geordin Hill-Lewis, Faiez Jacobs stated that the proposed budget was not a "Budget of Hope" but a "Budget of Anxiety." The letter prompted a public outcry, leading to changes in the final budget. The City has committed to investing around R40 billion in infrastructure over three years, with 75% of that investment benefiting lower-income households.
The author, Faiez Jacobs, a former Member of Parliament and founder of The Transcendence Group, argues that the budget's success should be measured by its impact on people's lives. He proposes a "People's Return on the Rand" to evaluate the effectiveness of the budget. This involves tracking how many households are better off, how much their cost of living has decreased, and how many sustainable jobs have been created. Jacobs emphasizes that a budget is not successful merely because the government has spent the money; it succeeds when people's lives improve.
Jacobs criticizes the City's approach to municipal relief, stating that it should be made easier to access for qualifying households. He also suggests that the City should examine the municipal costs imposed on early-childhood-development centers and other community institutions. The author argues that a capable city should make people's lives easier, not more difficult, with red tape. This is particularly important given the recent controversy over the city's 2025/26 city-wide cleaning, water, and sewerage charges, which were declared unlawful, invalid, and unconstitutional by the Western Cape High Court on April 30.
Jacobs also highlights the issue of the "Distance Tax," which refers to the economic burden imposed on residents who live far from work. He argues that housing policy cannot be separated from economic policy and that the Democratic Alliance has failed to deliver homes to those in need. Jacobs suggests that public land should be used to create public value, rather than being sold to private developers. He cites the example of the Salt River Market, where a 970-unit project was announced, but construction had not started.
The author emphasizes the need for a more inclusive and integrated city, where public land is used to benefit all residents. He argues that a home close to opportunity is an income intervention and that the City should prioritize building homes on public land. Jacobs also suggests that the City should focus on creating jobs and supporting local enterprises. He proposes that a billion-rand project should leave behind more than just concrete; it should also leave behind skills, enterprises, livelihoods, and capability.
Jacobs is standing as a candidate in the upcoming election, with a vision for a "Cape Town Economy of Belonging." He wants to build a city where residents can afford to live, move, and find work. Jacobs emphasizes the need for co-creation with Capetonians, as the council does not possess all the wisdom of a city. He argues that after more than two decades under the same governing party, Capetonians are entitled to interrogate the record and compare alternatives.
The debate over Cape Town's budget highlights the need for a more nuanced approach to addressing the city's pressing issues. Jacobs' proposal for a "Budget of Belonging" emphasizes the need for affordability, housing, jobs, and dignity. The City's proposed R87 billion budget will be closely watched, as residents expect to see tangible improvements in their lives. The key points to watch are:
Key points
- The City's budget should prioritize affordability, housing, and jobs.
- The budget's success should be measured by its impact on people's lives.
- Public land should be used to create public value, rather than being sold to private developers.
