UK government faces pressure to terminate Palantir’s £330 million NHS data contract

Prime Minister Andy Burnham faces a decisive choice over Palantir’s £330 million contract to manage healthcare data on the NHS Federated Data Platform, with Whitehall sources indicating a decision is needed within weeks to allow time for transition planning. The contract, the largest of Palantir’s public-sector deals in the UK, has become a flashpoint for opposition within the Labour Party and among campaigners who argue the company’s role undermines public trust and data sovereignty.

Palantir’s broader footprint in the UK public sector includes contracts worth around £670 million across health, defence, and policing, but the NHS contract has drawn the most vocal opposition. Campaigners have urged Burnham to invoke a break clause to terminate the deal by 2027, while internal Labour Party factions are split: left-leaning MPs and grassroots activists push for cancellation, while some officials and advisors quietly support maintaining the relationship, citing operational continuity and the company’s perceived indispensability in critical infrastructure.

Public opposition has crystallised in petitions, including one with 177,000 signatures calling for Palantir’s removal from the NHS entirely. The government has not committed to an opt-out mechanism for patients, responding only that it would consider such a policy in future deliberations. The pressure has intensified scrutiny of Palantir’s role in British governance, with critics arguing the company’s US legal obligations and opaque practices pose risks to UK data autonomy and democratic oversight.

Within the Labour Party, figures such as Rachael Maskell and Clive Lewis have publicly opposed the contract, citing concerns about patient trust and the company’s ties to US surveillance frameworks. Maskell, a former NHS clinician, argued in a parliamentary debate that entrusting patient data to Palantir risked eroding confidence and health outcomes. Meanwhile, advocates within the government, including Varun Chandra—who plays a key role in managing relations with Big Tech and US counterparts—have defended Palantir’s performance and its perceived necessity in crisis scenarios, such as military operations.

The debate has also surfaced conflicts of interest, including reports that a senior civil servant in the Department of Health recused herself from Palantir-related matters after previously working for a consortium partner involved in the NHS data platform bid. Palantir’s UK CEO, Louis Mosley, has criticised opponents for politicising the contract, asserting the company’s indispensability in scenarios such as NATO operations.