Sadiq Khan has blocked a £50 million Metropolitan police contract with the US technology company Palantir, citing serious breaches of procurement rules. The decision has sparked a dispute between the London mayor and Scotland Yard, which criticised the move as disappointing and warned it could lead to officer cuts.
The deal would have seen Palantir’s AI technology used to automate intelligence analysis in criminal investigations. The Mayor’s Office for Policing and Crime (Mopac) vetoed the contract after finding that the Met had failed to obtain approval for its procurement strategy and had only seriously considered one supplier.
In a letter to Met Commissioner Mark Rowley, Deputy Mayor Kaya Comer-Schwartz described the failure as a “clear and serious breach” of procedural requirements, creating legal and reputation risks. The Met originally estimated the contract at £15m-£25m a year, with the proposed deal at the top of that range.
A Met spokesperson said the decision was disappointing, noting that without new technology the force would face further cuts, impacting its ability to keep London safe. The Met is already facing a £125m funding shortfall and 1,150 job cuts. The mayor’s office responded that tight budgets made robust procurement processes even more important.
The row highlights growing public concern over Palantir’s role in UK public services. The company, co-founded by Peter Thiel, also works with the Israeli military and US immigration enforcement. Chi Onwurah, chair of the Commons science and technology committee, welcomed the decision, saying it addressed the issue of vendor lock-in and dependence on large US-based providers.
