Government right to review NHS Palantir deal, says MP

Criticism is not 'ideological'

A senior MP has rejected claims by US data firm Palantir that criticism of its multimillion-pound NHS contract is driven by ideology, explaining that concerns centre on transparency, value fir money and data security.

Chi Onwurah, who chairs the Science, Innovation and Technology Select Committee, has rejected claims from Palantir that those questioning its involvement with the NHS are driven by ideology.

Ms Onwurah said concerns raised are "legitimate and substantive" and it was appropriate for the government to consider options for exiting the £330m agreement between NHS England and the company.

Her comments come after Palantir's UK executive vice-chair, Louis Mosley, urged ministers not to "give in to ideologically motivated campaigners" as officials explored triggering a break clause in the deal.

The contract centres on the development of the NHS Federated Data Platform (FDP), an AI-enabled system designed to link health data across services in England.

Onwurah said concerns raised during her committee's inquiry were not confined to ideology, but instead focused on practical issues including transparency, value for money, and data security.

She highlighted three key areas under scrutiny: the circumstances under which Palantir was awarded the contract; the use and protection of patient data; and the role of former minister Peter Mandelson, whose consultancy previously advised the company.

"Those three issues have not been a fringe concerns," Onwurah told The Guardian.

"There may be those who have an ideological concern about data and Palantir but there are issues around contract transparency, vendor lock-in, value for money and data security."

Ms Onwurah added that trust issues among NHS staff, already under strain after the pandemic and years of austerity, could hinder adoption of new digital systems.

"One of the challenges of fusing innovation to the NHS is that so many NHS staff are burned out after Covid and austerity. So to add on to that a resentment relating to trust issues makes something that is difficult all the more so."

Government exploring exit options

The government has sought legal advice on whether it can activate a break clause in the contract.

Ms Onwurah said ministers were right to explore "all options", including withdrawal, particularly given ongoing questions about vendor lock-in and long-term costs.

Large technology firms have previously been criticised for offering services at low or nominal cost to secure larger public sector contracts later.

Palantir has secured more than £500m in UK public sector work, including contracts with the Ministry of Defence, police forces and financial regulators.

Last month, the Financial Conduct Authority (FCA) awarded the company a short-term contract to analyse internal intelligence as part of efforts to tackle financial crime.

The three-month pilot will see Palantir use its Foundry platform to process large datasets, including emails, call recordings and reports of suspected wrongdoing. The FCA said Palantir would act strictly as a "data processor" under its instruction, with all data remaining in the UK.

The FCA deal has also drawn criticism from privacy advocates and some within the regulator, who warn that allowing a private company access to sensitive financial data could pose risks.

Meanwhile, Palantir's growing footprint across UK public services continues to fuel debate over the role of large technology firms in handling sensitive public data.

The select committee is expected to publish its findings on the digital transformation of public services, including the use of AI, in the coming weeks.