MPs from across the political spectrum are calling on the Labour government to terminate a £330 million contract with the US data analytics firm Palantir, arguing that the deal threatens patient privacy and undermines public trust in the National Health Service.
Bipartisan Concerns Over Data Privacy
The contract, awarded in 2024, provides Palantir with access to vast amounts of NHS patient data to help improve operational efficiency. However, a group of more than 40 MPs have signed a letter urging Health Secretary Wes Streeting to scrap the deal, warning that it could lead to the commercial exploitation of sensitive health information.
“This contract represents a fundamental breach of trust between the NHS and the people it serves,” said Labour MP and former health minister Lord Ara Darzi, who co-signed the letter. “Patient data should never be handed over to a private company with such a controversial record on privacy.”
Palantir’s Controversial Reputation
Palantir, co-founded by billionaire Peter Thiel, has faced scrutiny for its work with US immigration enforcement and military agencies. Critics argue that its involvement in the NHS could set a dangerous precedent for the privatization of healthcare data. The company has defended its record, stating that it operates under strict data protection laws and that its technology helps the NHS reduce waiting times and improve patient outcomes.
Labour’s Stance and Alternative Proposals
The Labour government has so far defended the contract, with a spokesperson saying it is “essential for modernizing the NHS and delivering better care for patients.” However, the growing rebellion within the party has put pressure on ministers to reconsider. Some MPs are advocating for a publicly owned alternative, such as expanding the NHS’s own data platform, NHS Digital, rather than outsourcing to a private firm.
“We have the talent and expertise within the public sector to build a system that is both effective and trustworthy,” said Liberal Democrat MP Daisy Cooper, another signatory. “There is no need to hand over £330 million to a company with such a track record.”
Financial and Operational Impact
The contract, worth £330 million over five years, is one of the largest technology deals in NHS history. Palantir’s software is already being used in several NHS trusts to analyze patient flow, predict demand, and allocate resources. Proponents of the deal argue that it has already led to measurable improvements, including a 15% reduction in waiting times in some pilot sites.
However, opponents question whether these benefits justify the risks. “The NHS is already underfunded and overstretched,” said Darzi. “We cannot afford to waste money on contracts that erode public confidence and compromise patient privacy.”
Next Steps
The letter to Streeting was sent ahead of a parliamentary debate on the issue scheduled for next week. The health secretary is expected to face tough questions from both sides of the House. Meanwhile, campaign groups have launched a petition calling for the contract to be scrapped, which has already gathered over 100,000 signatures.
The outcome of this debate could have far-reaching implications for how the NHS handles data in the future. As the government pushes ahead with its digital transformation agenda, the Palantir contract has become a flashpoint in the wider debate about the role of private companies in public services.
