4.20 Any expenditure incurred by the public sector body on the JV must come within the powers, expenditure limits and controls of the public sector body. For JVs set up to sell products, the business case will need to include assumptions of the JV's future revenue, based on assumed future prices and volumes of sales. Pricing assumptions should not be made without checking on the relevance of HM Treasury rules40 and possible legal restrictions such as those contained in The Competition Act 1998 (see also Chapter 7).
__________________________________________________________________________________________________
40 Managing Public Money, Chapter 6, section 6.4.2.