The Budget Speech postponement: A communications lesson

Source: © The Banking Organisation The Banking Organisation The postponement of the Budget Speech provides key communications lessons. Pictured: Finance Minister Enoch Godongwana

The postponement triggered speculation and a flurry of competing messages, while Treasury’s delayed response meant that the dominant voices shaping the discussion were those outside of government.

The real lesson lies in how communication - or the lack of it - can shape public perception, create uncertainty, and shift the balance of power with any major decision a business makes.

What could have been framed as a responsible fiscal recalibration instead became a political football, with different factions using it to push their own agendas?

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Crisis communication and reputation management

According to Bradly Howland, CEO of integrated storytelling agency Alkemi Collective, this situation serves as a case study in how businesses and brands should think about crisis communication and reputation management.

“The same principles that apply to government decision-making in moments of uncertainty are relevant to companies navigating high-stakes business shifts, consumer backlash, or policy changes.”

He adds that this was a clear example of what happens when stakeholders lose control of a story.

“The Speaker of the National Assembly gave politicians a chance to respond to the Budget Speech’s delay before the Finance Minister was able to comment on this move and give Treasury’s side of the story.

"This meant that politicians, opposition parties, and unions framed the narrative before the government could. In a time of uncertainty, silence is never neutral - it allows others to take control of the conversation.”

Howland points out, “In a crisis, time is everything. A delayed reaction invites misinformation, fuels uncertainty, and makes the public (rightly or wrongly) question your credibility.

"Whether you’re a consumer brand, a financial institution, or a government entity, transparency and speed are key."

First to establish context

The postponement also reinforced the importance of being the first to establish context.

The Vat increase proposal, one of the key sticking points in the Budget discussions, was largely positioned as an added burden on struggling consumers rather than as a necessary step in ensuring fiscal sustainability.

Without clear framing from Treasury on why the increase was being considered and what measures would be put in place to soften the impact, public sentiment turned against the proposal almost immediately.

This illustrates the need for businesses to clearly communicate the reasoning behind major decisions, whether it’s a price adjustment, policy shift, or operational change.

“Customers don’t just want to hear what’s changing; they want to understand why and how it affects them.

"In business, when making a tough decision (whether it’s a product phase-out, service change, or rate increase) giving your audience the full context can mean the difference between backlash and buy-in,” explains Howland.

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Public sentiment

"In today's ridiculously fast digital world, public sentiment can shift business strategy, anchor campaigns, and force policy changes. Smart brands and governments must get ahead of reading reader sentiment and responding before a crisis hits," he adds.

With the Budget Speech now rescheduled for 12 March, Treasury has an opportunity to reset the conversation, but simply delivering the same speech at a later date will not be enough to undo the reputational damage that was done.

Public expectations have now shifted, and there will be heightened scrutiny on how the revised speech addresses concerns that have emerged over the past week.

For businesses, this serves as a lesson that when a campaign, product launch, or major corporate decision fails to land well.

“This applies to any business facing reputational damage. When a campaign or corporate initiative doesn’t resonate the first time, a simple ‘redo’ won’t fix it.

"Companies need to show that they have taken feedback on board, adjusted accordingly, and are coming back stronger. Importantly, a second attempt must come with clear evidence that feedback has been taken on board,” says Howland.

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Leadership in communication

The fallout from the Budget Speech postponement serves as a reminder that leadership in communication is as important as strategy.

Whether in government or business, the ability to respond swiftly, communicate clearly, and proactively engage with audiences will determine how an organisation weathers uncertainty and maintains public trust.

By taking charge of the narrative and implementing these strategies, Treasury can successfully navigate challenges and rebuild trust - a critical imperative for effective governance.