NHS Palantir Deal Under Fire as Officials Warn of Reputation Risk
Health officials have raised serious concerns that the controversial reputation of the US tech firm Palantir could severely hinder the delivery of a vital £330 million NHS data contract, according to newly released briefings. The documents, obtained under the Freedom of Information Act, reveal that Whitehall officials privately warned the public perception of Palantir would limit its rollout, potentially undermining value for money.
Background of the Contract and Controversy
In 2023, ministers selected Palantir, a surveillance technology company known for its work with the US Immigration and Customs Enforcement (ICE) under Donald Trump and the Israeli military, to build an AI-enabled data platform. This system aims to connect disparate health information across the NHS. However, after Keir Starmer demanded faster deployment, officials expressed fears that Palantir's image would obstruct progress.
By last summer, less than half of health authorities in England had begun using the technology, facing opposition from both the public and doctors. The British Medical Association has indicated its members might refuse to use parts of the system, citing Palantir's role in targeting ICE raids in the US. In the House of Commons, MPs recently described Palantir as "ghastly" and "a highly questionable organisation."
Private Briefings and Public Backlash
A private briefing for Wes Streeting before a meeting with Palantir's European boss in June 2025 highlighted these issues. Department of Health officials wrote: "The public perception of the FDP during the procurement, and then in delivery, has been affected by the profile of Palantir. It is likely to make it harder to go further with the FDP, and to encourage the inclusion of GP data locally." The briefing, released to the tech fairness campaign group Foxglove, also noted debates about patient privacy and concerns over NHS "lock-in" to a single vendor, though officials dismissed some criticisms as "misconceptions."
Donald Campbell, director of advocacy at Foxglove, stated: "The prime minister and the health secretary should listen to the public they serve when they tell them Palantir has no place in the NHS. They should not be scheming with tech billionaires’ staff on how best they can ‘mitigate’ the ‘public perception’ problems these tech giants deservedly face through their own repellent behaviour."
Political and Ethical Implications
The fallout from Peter Mandelson's relationship with convicted child sex offender Jeffrey Epstein has further tarnished Palantir's image, as the company employed Mandelson's lobbying firm, Global Counsel. Before his dismissal, Mandelson took Starmer to meet Palantir's chief executive, Alex Karp, in Washington. MPs have since demanded greater transparency around Palantir's public sector deals, which include a £240 million contract with the Ministry of Defence and agreements with several police forces.
Streeting attempted to show transparency by publishing WhatsApp messages with Mandelson from August 2024 to October 2025, though none mentioned Palantir directly. In one exchange, Mandelson encouraged Streeting to visit the US, noting "Lots of tech companies and people to talk to."
Current Status and Future Challenges
New figures show the number of NHS organisations using Palantir technology has increased from 118 to 151 since June, still well short of the target of 240 by year-end. Palantir was co-founded by billionaire Peter Thiel, a Donald Trump supporter who has criticised the NHS, describing public affection for it as "Stockholm syndrome."
Former Conservative minister David Davis warned of a "huge value-for-money issue," citing "naivety in the senior management of the NHS" for awarding a contract to a company with "spectacular baggage." He predicted difficulties with hospital trusts and GPs, estimating most GPs would never accept an organisation like Palantir.
John Puntis, co-chair of Keep Our NHS Public, added: "This looks like another example of a hugely wasteful IT contract, and lack of public trust will make it unworkable. They ought to end the contract or not renew it."
A Palantir spokesperson defended the company's role, stating: "Palantir software is helping to deliver better public services in the UK, including delivering 99,000 more NHS operations and reducing hospital discharge delays by 15%." NHS England and the Department of Health and Social Care were approached for comment but have not yet responded.
