Andy Burnham to drop spy-tech firm Palantir from NHS, reports say
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When the PM-in-waiting was mayor of Greater Manchester, the council issued no contracts to Palantir
Andy Burnham pictured this week (AFP)
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Andy Burnham, Britain's prime minister-in-waiting, is set to drop US tech company Palantir from the National Health Service (NHS).
Burnham, who is expected to succeed Keir Starmer as Labour Party leader and prime minister later this month, is reviewing the government's artificial intelligence strategy, according to The Telegraph.
This comes two years into Palantir's seven-year £330m NHS deal.
Palantir, an American data surveillance firm, also has a £240m deal with the Ministry of Defence (MoD) and a £15m contract related to Britain’s nuclear deterrent.
Despite a lack of transparency around the extent of Palantir’s deals in the UK’s public services, at least 34 contracts have been uncovered within sectors including the police, child social care, refugee schemes and the environment.
Palantir has drawn widespread criticism over its relationship with the Israeli military, among other things.
In January 2024, Palantir announced a partnership with the Israeli Ministry of Defense to deploy its technology in support of “war-related missions” that use drone-fired missiles to target civilians in Gaza, including journalists and aid workers.
In April 2025, Palantir's chief executive Alex Karp responded to accusations that the company's technology had enabled the killing of Palestinians in Gaza by saying “mostly terrorists, that’s true”.
A report by Francesca Albanese, the UN special rapporteur on the occupied Palestinian territories, suggested this indicates the firm had “executive-level knowledge and purpose vis-a-vis the unlawful use of force by Israel” in Palestine.
The Pentagon is reportedly investigating if Maven, the AI system run by Palantir to identify targets, played a role in the US “double-tap” missile strike on an Iranian girls’ school in February which killed more than 170 people, mainly children.
Partially funded by the CIA at its inception, Palantir was founded by tech billionaire Peter Thiel, who famously declared “I no longer believe that freedom and democracy are compatible”.
Growing controversy in Britain
While Burnham was mayor of Greater Manchester from 2017 until last month, the Greater Manchester Combined Authority issued no contracts to Palantir.
Stuart Andrew, the Conservative Party's shadow health secretary, told The Telegraph that "if Andy Burnham tears up a programme that is improving patient care, he will have to explain why he chose politics over patients.
"The NHS should use the best technology available to save lives, cut waiting lists and help staff deliver better care. If we want the NHS to embrace the very best technology, we must be willing to work with the world’s leading technology companies.
"Driving them away for political reasons risks undermining confidence in partnering with the NHS. Patients should never pay the price for Labour’s political posturing. Lives are too important to be sacrificed for Andy Burnham’s political beliefs."
But Palantir has become increasingly unpopular, including within the Labour Party.
Thiel has previously said the NHS “makes people sick” and labelled British affection for the health system “Stockholm syndrome”.
Palantir: How a US spy-tech firm with links to Israel’s genocide infiltrated the British state
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Last month, MPs urged the government to trigger the 2027 break clause in the contract and develop an in-house replacement or seek an alternative UK provider.
The cross-party Science, Innovation and Technology Committee report warned that the increasing reliance on Palantir in the UK’s public sector is an “unacceptable point of weakness” which could leave services “at the mercy” of foreign actors.
Louis Mosley, Palantir’s UK CEO, recently accused critics of choosing “ideology over patient safety” in their criticisms of the deal.
Multiple NHS hospitals, however, rejected the technology on the grounds they would “lose functionality rather than gain it”.
Scrutiny is now likely to increase on Palantir's other contracts in Britain.
London Mayor Sadiq Khan in May decided to block a £50m Metropolitan Police deal with Palantir, citing a “clear and serious breach” of procurement rules.
Khan’s office said London’s police force risked becoming locked into Palantir’s technology, adding that the proposed deal had not “ensured or demonstrated value for money”. Before that, Khan had said he had “concerns about using public money to support firms who act contrary to London’s values”.
Khan has since backtracked on the decision, granting Palantir a 12-month pilot project with scope for extension after the company launched legal action against his veto.
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