A bipartisan UK parliamentary committee has warned that reliance on Palantir's technology creates an unacceptable point of weakness in UK public services and digital infrastructure [1, 2]. The committee said this dependency poses a "huge risk" that could bring public services and the economy to a halt, with Chair Dame Chi Onwurah stating, "We know that with vendor lock-in, over time, we’ll get more expensive and worse services. It’s a trap that has to be avoided." [1]
Palantir and its partners hold contracts worth approximately $750 million with the UK's National Health Service (NHS) and Ministry of Defence, providing key data platforms and services [1]. The committee raised concerns about Palantir's political motivations, citing controversial comments from cofounder Peter Thiel and CEO Alex Karp's manifesto. Onwurah commented, "We have a key vendor saying they will exercise technology in accordance with their political mission. If what the UK is trying to do... does not align with Palantir’s political objectives, we clearly can’t depend upon them as a supplier." [1]
The committee recommended the NHS activate a break clause in its Federated Data Platform contract with Palantir by February 2027 to reduce dependence on the US company [1, 2]. The NHS contract includes this break clause, which the committee urged be exercised to protect UK technological sovereignty and public interests [2]. The panel also highlighted broad risks from growing reliance on US tech firms such as Microsoft and Amazon Web Services affecting UK sovereignty [1, 2].
Earlier in 2026, London Mayor Sadiq Khan blocked a $67 million contract between the Metropolitan Police and Palantir over legal and reputational risks, signaling increasing governmental caution toward the company's presence in the UK [2]. The committee also advised delaying rollout of the UK government’s digital ID system until relevant infrastructure is improved [2].
Palantir technology has been in use since 2020 when the UK government employed it to map Covid-19 spread and coordinate medical supplies early in the pandemic [1]. The February 2027 recommendation to activate the NHS contract break clause marks a significant escalation in parliamentary concern about the security and political risks associated with Palantir.
The committee’s report underscores immediate government action on contracts with Palantir and related US tech providers ahead of the NHS break clause deadline next February [1, 2].
