The City of Cape Town has removed its public claim that “lower rates are coming to Cape Town” after a complaint lodged with the Advertising Regulatory Board (ARB) by the Cape Independence Advocacy Group (Ciag).
The complaint centres on how the City communicated proposed changes to property rates under its latest valuation cycle. Municipal rates are calculated by applying a “cents in the rand” tariff to a property’s municipal valuation.
While the City has proposed reducing the tariff by about 10.2%, new valuations under the General Valuation 2025 roll reflect an average increase of about 17%, according to the City.
Ciag argued the City’s messaging placed emphasis on the reduction in the tariff without adequately explaining the impact of higher property valuations. According to the group, this created the overall impression that rates bills would decrease, when in practice many residents would face increases.
In its submission to the ARB, Ciag said its own financial modelling indicated that for properties valued above R550,000, ratepayers would likely experience above-inflation increases in their municipal bills. The organisation maintained this outcome contradicts the City’s public claim that “lower rates” are forthcoming.
Prior to lodging the complaint, Ciag engaged the City directly. The group said it provided its analysis to the offices of mayor Geordin Hill-Lewis and the finance MMC Siseko Mbandezi and requested clarification on how the City had arrived at its conclusions.
According to Ciag, the City initially responded but did not address the discrepancies raised and did not respond to subsequent follow-up correspondence.
Ciag subsequently lodged a complaint with the ARB, citing provisions in the Code of Advertising Practice which prohibit misleading or ambiguous claims. The group further claimed that, after the complaint, the City removed the “lower rates” statement from its public communication platforms.
The City has not publicly issued a formal correction or clarification explaining the discrepancy between the headline claim and the underlying calculations.
Ciag co-founder Phil Craig has criticised the City’s handling of the matter, arguing that removing the statement does not correct the public record. He said if the claim cannot be substantiated, the City should issue a formal retraction and apology.
The group has requested the ARB require the City to publish a retraction through the same channels used to disseminate the original claim.
The dispute arises amid broader debate over the City’s 2026/27 budget proposals. While the City has promoted the tariff reduction as a measure to cushion residents, many civic groups and analysts have warned rising property valuations are likely to drive higher overall costs for many households.
The ARB process will determine whether the City’s communication breached advertising standards relating to misleading claims.
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