Palantir's role in UK public services branded 'unacceptable' by committee report

Britain's reliance on US tech firm Palantir in transforming public services is an "unacceptable point of weakness" that could leave people's private information "at the mercy" of foreign actors, MPs have warned.

The Commons Science, Innovation and Technology Committee has published a report about the firm's involvement in bodies including the Financial Conduct Authority and the NHS amid growing privacy concerns.

Founded in 2003, Palantir is a data analytics company contracted by governments, militaries and other large organisations around the world.

Supporters argue its technology can improve efficiency and decision-making. For the NHS, it provides a major data platform designed to bring together information from across the health service so hospitals can analyse it more easily and improve how care is delivered.

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Palantir says it was appointed "in line with public contract regulations" and all data remains under the health service's control. The NHS says the deal has delivered "huge benefits for patients [...], joining up care, speeding up cancer diagnosis, and ensuring thousands of additional patients can be treated each month".

But critics claim it raises questions about privacy, ethics and the role of large technology companies in handling sensitive public-sector data – and MPs have called on the government to wean itself off the firm's services.

The science and tech committee said: "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."

It has urged the government to exercise a 2027 break clause in Palantir's NHS contract and either seek an alternative UK provider or develop an in-house alternative.

'We are seriously exposed'

The committee also wants the government to provide greater clarity on its vision to become a "modern digital state", which cannot be achieved while "serious data hygiene deficiencies" remain.

Right now, it says infrastructure is not in a fit state to make good on Labour's controversial digital ID plans.

Committee chair Dame Chi Onwurah said: "We welcome the government's intentions to make the UK a 'truly digital state', but it's not clear how this will be delivered.

"Without a detailed and measurable plan, it risks falling short – but there's still time to put this right.

"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."

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