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Labour lacks plan if foreign tech giants 'pull the plug', Lib Dems warn

The Liberal Democrats have warned that Labour has no plan if foreign technology companies or governments restrict access to critical systems, following government acknowledgement of risks from overseas tech reliance.

  • The Liberal Democrats state Labour has no plan if foreign tech access is restricted.
  • Ministers acknowledged risks from concentrated technology markets and the need to reduce 'over-dependence'.
  • The government's approach includes diversifying suppliers and building domestic capability.

The Liberal Democrats have warned that Labour has "no plan" if foreign technology companies or governments cut Britain off from systems underpinning critical services. This follows ministers acknowledging the risks posed by the UK's reliance on overseas technology.

Victoria Collins, the Lib Dems' tech spokesperson, accused the government of awarding "contract after contract to foreign tech oligarchs" without building sufficient British alternatives. She stated that ministers have not addressed what Britain would do if access to foreign technology was suddenly restricted.

The government's response to a Science and Technology Committee report on UK tech sovereignty acknowledged that highly concentrated technology markets pose risks and that Britain needs to reduce "over-dependence." Its approach involves diversifying suppliers, building domestic capability, and working with trusted allies, rather than aiming for technological self-sufficiency.

US data analytics firm Palantir, which holds major contracts with the NHS and Ministry of Defence, has been a significant beneficiary. Its NHS Federated Data Platform contract is valued at up to £330m over seven years. Former Labour deputy leader Tom Watson has joined Palantir as a senior vice president, stating on Friday that some criticism of the company was "propaganda" but acknowledging "legitimate questions about large technology companies and sovereign control."

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