Palantir’s NHS contract could end if others ‘can do the job better’

Health minister Zubir Ahmed has signalled that the government could consider alternatives to Palantir’s NHS federated data platform (FDP) when the contract reaches its break clause.

Speaking in a parliamentary debate on 16 April, Ahmed said that the £330m contract would be subject to value-for-money assessments and could be revisited if better-performing suppliers emerge.

The FDP, awarded to Palantir in 2023, aims to bring together NHS data from multiple systems to improve operational performance, including elective recovery and patient flow.

When questioned by MPs on whether the government is considering a review of the break clause in its contract with the US software data analytics firm, Ahmed said: “We live in a fast-paced technology world, and this always means looking to the next provider possible to provide value for money.

“So, it is right that there are break clauses in this contract to allow those evaluations to take place and I can reassure all honourable members, as a clinician and as a minister, my north star is always patient safety and quality, and of course, value for money.

“If at that point in the break clause we evaluate and we find there are other providers that can do the job better, of course then that needs to be looked at and reflected upon.”

Zubir added: “I would not be doing my job properly if I did not, at every opportunity, try and champion British business and British SMEs.”

He confirmed that the government will decide later this year whether to extend the deal and that NHS England would be transparent about the process.

Ahmed defended the programme, pointing to early benefits such as reduced discharge delays and improved theatre utilisation, and stressed that NHS organisations retain control over how data is used.

I think every major government infrastructure program of this scale and of this importance should be held under constant scrutiny – Louis Mosley, Palantir

However, the debate exposed significant cross-party concern about the contract, with MPs questioning supplier lock-in, transparency and public trust.

Liberal Democrat MP Martin Wrigley argued that the FDP risks creating long-term dependency on a single supplier and fails to deliver lasting value to the NHS.

Concerns were raised by Labour MP Dawn Butler about reliance on overseas technology suppliers and the impact on national capability.

“We must ask ourselves whether Palantir allows us to have AI and data sovereignty. I think the answer to that will be no,” she said, adding that “we can do better in the UK”.

Jeremy Corbyn, independent MP for Islington North, called for the contract to be ended on ethical grounds, arguing Palantir’s links to surveillance, immigration enforcement and military activity make it unsuitable to handle NHS patient data.

“I believe this contract affronts the values of our country and the NHS,” he said.

Speaking on BBC Politics Live, Louis Mosley, executive vice chair and head of Palantir UK, said that the firm welcomed scrutiny.

“I think every major government infrastructure program of this scale and of this importance should be held under constant review, constant scrutiny, and suppliers should be held accountable.

“And I think when you look at this programme, what you will then discover is it’s one of the rare examples of it delivering in government, and we’ve had tremendous results,” he said.