A cross-party committee of MPs has urged the government to activate a break clause in the controversial £480 million contract between NHS England and US data firm Palantir. The House of Commons Technology Committee stated in a new report that Palantir should not be given a 'significant role' in the UK's public data infrastructure, citing concerns over the company's past and the sensitive nature of health data.
The contract, awarded in November 2023, is for the development of the NHS's Federated Data Platform (FDP), a system designed to help the health service manage patient care, supply chains, and workforce planning more efficiently. While the committee acknowledged the potential benefits of the FDP, it raised serious questions about the extent of Palantir's involvement and the long-term implications for data privacy and national security.
The MPs' report highlighted the need for robust safeguards and greater transparency regarding how public sector data is managed and by whom. It specifically called for the government to ensure that no single private company, especially one with a history of working with defence and intelligence agencies, holds such a central position in the nation's critical data systems. The committee's recommendations aim to prompt a review of the contractual terms and potentially limit Palantir's influence.
The government has previously defended the contract, emphasising the competitive procurement process and the necessity of advanced technology to modernise the NHS. However, opposition parties and privacy advocates have consistently voiced concerns about the deal, particularly given Palantir's co-founder, Peter Thiel, and the company's origins with CIA backing. They argue that the vast amount of sensitive patient data involved warrants extreme caution and public scrutiny.
Shadow Secretary of State for Health and Social Care, Wes Streeting, has previously criticised the government's handling of NHS data contracts, stating that Labour would ensure transparency and public trust in any such agreements. The committee's intervention adds significant pressure on the government to address these concerns and potentially reconsider the scope of Palantir's engagement with NHS data.
The report underscores a broader debate about the role of large technology companies in public services and the balance between innovation, efficiency, and data sovereignty. The government now faces a decision on whether to heed the committee's call or proceed with the existing terms of the contract, potentially facing further parliamentary and public scrutiny.
Source: House of Commons Technology Committee