The UK House of Commons Science, Innovation and Technology Committee published a report on 2 June 2026 describing Britain's reliance on Palantir Technologies (PLTR) in transforming public services as an 'unacceptable point of weakness' that could leave private information 'at the mercy' of foreign actors. The committee urged the government to exercise a 2027 break clause in Palantir's NHS Federated Data Platform contract, valued at £330 million over seven years, and to either seek an alternative UK provider or develop an in-house solution. The report warned that the government's ambitions could be derailed 'by a decision taken outside our shores based on the narrow interests of a foreign commercial or state actor.'
The committee examined Palantir's involvement across multiple UK public bodies, including the Financial Conduct Authority and the NHS, amid growing privacy concerns. It cited Palantir's supply of software for the US military and immigration services, as well as co-founder Peter Thiel's political views, including his criticism of the concept of a national health service, as factors informing its assessment. The report also concluded that the government lacked a coherent plan for the digital transformation of public services, calling its aim to save £45 billion annually 'worryingly optimistic.' [Source: Reuters]
Parliamentarians also called on the government to disclose more details of a separate military contract with Palantir. The committee's recommendations are non-binding, and it is up to the UK government to decide whether to act on them. Committee chair Chi Onwurah said concerns centre on transparency, value for money and data security, and that it was appropriate for the government to consider options for exiting the £330 million NHS agreement. [Source: Computing] Palantir's UK executive vice-chair Louis Mosley urged ministers not to 'give in to ideologically motivated campaigners' as officials explored triggering the break clause. [Source: Computing]
Palantir said it was appointed 'in line with public contract regulations' and that all data remains under the health service's control. [Source: Sky News] NHS England stated the deal has delivered benefits including joining up care, speeding up cancer diagnosis, and ensuring thousands of additional patients can be treated each month.
The NHS Federated Data Platform contract was signed with NHS England in late 2023 under the previous Conservative government, supported by Accenture, PwC, NECS and Carnall Farrar. Palantir had previously won a succession of pandemic-era deals worth a combined £60 million without competition. In December 2025, the UK Ministry of Defence awarded Palantir a £240 million deal for data analytics capabilities without competitive tender. In March 2026, the FCA awarded Palantir a three-month contract to investigate its internal intelligence data to help tackle financial crime. In May 2026, NHS England confirmed it is allowing Palantir staff access to identifiable patient data following a change in policy. Science minister Patrick Vallance told MPs in March 2026 that the government's deals with Palantir would be done differently in the future, emphasising investment in UK technology and companies.
Sources: Sky News, Bloomberg, Reuters, The Register, Computing, Medact, The Lowdown