NHS Officials Warn Palantir's Reputation Threatens £330m Data Contract
Health officials have expressed serious concerns that the controversial reputation of US tech firm Palantir could significantly hinder the delivery of a vital £330 million NHS data contract, according to newly released internal briefings. The documents, obtained under the Freedom of Information Act, reveal that Whitehall officials privately warned the public perception of Palantir would limit the rollout of an AI-enabled data platform designed to connect disparate health information across the National Health Service.
Controversial Background Sparks Resistance
Palantir, a surveillance technology company that has worked for the Israeli military and Donald Trump's ICE operations, was selected by ministers in 2023 to build the NHS data platform. However, the company's association with controversial programs has sparked significant opposition from both the public and medical professionals. The British Medical Association has stated that its members could refuse to use parts of the system, citing Palantir's role in targeting ICE raids in the United States.
By last summer, less than half of health authorities in England had begun using the technology amid growing resistance. MPs in the House of Commons recently described Palantir as "ghastly" and "a highly questionable organization," while demanding greater transparency around the company's public sector deals, which include a £240 million contract with the Ministry of Defence and agreements with several police forces.
Internal Briefings Reveal Delivery Concerns
In a private June 2025 briefing prepared for Health Secretary Wes Streeting before a meeting with Palantir's European boss, 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. We do not know the extent to which this is impacting on delivery. It is, however, likely to make it harder to go further with the FDP."
The officials acknowledged that debates about patient privacy and concerns about the NHS being "locked-in" to a single vendor had also affected the rollout, though they characterized many of these debates as "inaccurate" and resulting from "misconceptions." The briefing was released to Foxglove, a tech fairness campaign group that has been critical of the Palantir contract.
Political Connections and Public Backlash
The fallout over Peter Mandelson's relationship with convicted child sex offender Jeffrey Epstein has further complicated Palantir's image, as the company employed Mandelson's lobbying firm Global Counsel. Before his dismissal, Mandelson took Keir Starmer to meet Palantir's chief executive Alex Karp at the company's Washington showroom.
Streeting recently sought to demonstrate transparency regarding his relationship with Mandelson by publishing their WhatsApp messages, though none mentioned Palantir directly. In one exchange just over three weeks after Streeting's meeting with the company, Mandelson encouraged him to visit the US and mentioned planning meetings with tech companies.
Contract Faces Value-for-Money Questions
New figures show that while the number of NHS organizations using Palantir technology has increased from 118 to 151 since June, this remains well short of the target of 240 by year's end. Former Conservative minister David Davis stated the government now faces a "huge value-for-money issue" over the contract, citing "naivety in the senior management of the NHS" in awarding a contract to a company with "spectacular baggage."
Palantir was co-founded by billionaire Peter Thiel, a Donald Trump supporter who has previously criticized the NHS, saying it "makes people sick" and describing British affection for the health service as "Stockholm syndrome." This background has further fueled public distrust of the company's involvement in sensitive health data systems.
Calls to Scrap the Contract
Campaigners and medical representatives have called for the contract to be terminated. Donald Campbell of 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." John Puntis 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."
A Palantir spokesperson defended the company's work, stating their 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%. However, with mounting political pressure and documented internal concerns about reputation risks, the future of the NHS-Palantir partnership remains uncertain as officials grapple with balancing technological advancement against public trust and ethical considerations.
