Government committee says Palantir NHS contract should be ditched

The government now has two months to come up with a response.

The cross-party committee identifies Palantir as the most concerning example of the public sector’s growing reliance on a small number of major technology providers, including Microsoft and Amazon Web Services.

MPs urge the government to exercise the 2027 break clause in the NHS Federated Data Platform Contract with Palantir and either develop an in-house replacement or seek an alternative UK provider. 

Reliance on a small number of US-based providers represents a clear vulnerability, with ambitions to digitally transform public services potentially “at the mercy” of foreign actors, according to the committee.

The report says that the NHS could become too dependent on Palantir and that the company is not aligned with UK values.

“We welcome the government’s intentions to make the UK a ‘truly digital state,’ but it’s not clear how this will be delivered “ said the committee’s chair Dame Chi Onwurah MP (pictured) “my committee’s report sets out how, including by putting clear delivery metrics in place and giving the Government Digital Service the authority and leadership it needs to drive this transformation. A critical part of this transformation should include reducing the UK’s dependence on a small number of big US tech companies like Palantir. Vendor lock-in isn’t inevitable, and the current position leaves us seriously exposed. The UK can and should be aiming for technology sovereignty in critical parts of our public sector and supporting domestic alternatives through smarter procurement.”

Palantir has also been awarded a £240 million contract by the Ministry of Defence without  any competitive tender process.