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Ministers look to scrap Palantir’s £330m NHS contract

There are concerns about allowing the controversial tech firm into the public sector.

Charlie Herbert by Charlie Herbert
2026-03-31 11:32
in Politics
Ministers look to scrap Palantir's £330m NHS contract
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Government ministers are exploring a way out of a major NHS contract awarded to controversial American tech firm Palantir, according to reports.

Over the weekend, the Financial Times reported that ministers had explored triggering a break clause in the £330m deal with the analytics and AI firm.

Palantir had been awarded the contract to deliver the Federated Data Platform (FDP), an AI-enabled data platform designed to connect disparate health information across the NHS.

However, many have voiced concerns over the decision to put the health data of millions of Brits into the hands of Palantir.

The data analytics company was founded by influential American right-wing figure Peter Thiel, and works for the Israeli and US militaries and Donald Trump’s ICE operation.

READ NEXT: Most Brits reject Nigel Farage’s NHS plans and remain in favour of current system

The reports were welcomed by Lib Dem leader Ed Davey, who wrote in a post on X that it was “about time that Wes Streeting kicked Palantir out of the NHS.”

He added: “Trump’s favourite tech giant helps his ICE thugs target innocent people. They can’t be allowed anywhere near Brits’ private health data.”

It's about time that Wes Streeting kicked Palantir out of the NHS.

Trump's favourite tech giant helps his ICE thugs target innocent people. They can't be allowed anywhere near Brits' private health data. pic.twitter.com/i1jpU1Qyz4

— Ed Davey (@EdwardJDavey) March 30, 2026

In response to the reports, Palantir’s executive vice-chair Louis Mosley has urged the government not to give in to “ideologically motivated campaigners.”

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He told the Times: “Having a review clause in a contract is good and normal practice. However, what some ideologically motivated campaigners are suggesting should happen would harm patient care and prevent some of the biggest challenges facing the NHS from being tackled.

“That would be a mistake. The clear evidence of the past two years of delivery is that our software is helping. It is forecast to deliver £150m in benefits by the end of the decade, representing a £5 return for every pound spent.”

Last week, Health Secretary Wes Streeting acknowledged the ethical concerns over Palantir’s involvement in the NHS.

He told the Guardian Politics Weekly podcast: “When you look at some of the things Palantir’s leaders have said in the States, when you look at their political views and their outlook… If you were to put [Thiel] and some of those Palantir bosses on the political spectrum in the UK, they would be well off to the right of even Kemi Badenoch’s Conservative party.”

However, Streeting went on to add that Palantir did not see the patient data handled by its systems.

He said: “The platform they have given to us to improve our systems our performances, intelligence and tackling health inequalities, all of that is run by us, Palantir don’t see our patient data. Now I am in government I am in an even better position to assure myself and the public that that remains the case. One of the challenges remains.”

Tags: NHS

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