MPs warn Palantir’s role in public services is ‘unacceptable point of weakness’

Jonathan Bunn, Press Association Political Reporter

The role of US tech company Palantir in a bid to transform UK public services is an “unacceptable point of weakness” that potentially leaves information “at the mercy” of foreign actors, MPs have warned.

The Commons Science, Innovation and Technology Committee said reliance on a small number of US-based providers represents a “clear vulnerability”, as it called for a new strategy to prevent this dependence.

It comes amid growing concern about the involvement of US tech firms in the UK’s public bodies, including recent calls for the Financial Conduct Authority to prove its relationship with Palantir will not provide the Trump administration with access to sensitive citizen and commercial data.

“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,” the committee said.

It added: “Our view that Palantir’s increasing presence across the public sector represents an unacceptable point of weakness is not ideologically motivated or driven by concerns about the quality of their products.

“The Government should retain the ability to pick and choose individual suppliers and safeguard against the risk of vendor lock-in and debilitating dependencies, particularly in areas of critical national importance such as healthcare and national security infrastructure.”

The committee called for greater clarity on the Government’s definition of “technological sovereignty”, and a clear strategy for delivering it.

This would help identify where the UK needs sovereign capabilities and support the development of domestic alternatives to existing providers in critical sectors – reportedly a priority for the Chancellor, it added.

The committee also said “a lack of clarity extends to the heart of the Government’s vision for a modern digital state”, with uncertainty about what this means in practice.

It called for a clear plan to “translate ambition into reality”, adding the digital road map “lacks metrics to assess progress”.

The MPs urged 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.

The report also highlighted “serious data hygiene deficiencies” across the public sector, with “cultural transformation” required to establish the highest standards.

Without addressing these underlying weaknesses in digital infrastructure it would be “irresponsible” to roll out a digital ID system, the committee said.

Committee chairwoman 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.”

Responding to the report, Victoria Collins, Liberal Democrat technology spokesperson, said: “It has been plain to see for months now that handing over sensitive NHS data to giant US tech firms like Palantir was not just reckless – but it has left our public services dangerously exposed.

“The Government must now listen, use the break clause to stop relying on Palantir and start backing British tech instead with a UK sovereign alternative.”

A Government spokesperson said: “Digital platforms are already making a real difference to public services, and the NHS Federated Data Platform is joining up care, speeding up cancer diagnoses and ensuring thousands of additional patients can be treated each month, with strict data security requirements in place.

“More broadly, our roadmap for digital government sets out a detailed programme of reform with clear milestones and ongoing progress tracking already in place.

“We are also acting to reduce reliance on any single tech supplier, with protecting citizens’ data and ensuring value for taxpayers at the heart of everything we do.

“We welcome the committee’s report and will consider its recommendations carefully.”

Palantir UK chief Louis Mosley said the committee “has decided to put the politics of the playground before public services”.

He said: “The committee heard evidence from the highest levels of the NHS that adoption has exceeded targets and that NHS trusts were seeing benefits ‘in the form of additional operations, waiting list management and discharge co-ordination’.

“By calling for the cancellation of the programme that is delivering these benefits, they are trying to grab a quick headline at the expense of their own constituents’ care.”