Britain's reliance on US tech group Palantir is an 'unacceptable weakness," report says
Parliamentary Committee Raises Concerns Over Palantir's Role in UK Public Sector
By Muvija M
Committee Report Highlights Over-Reliance on US Firms
LONDON, June 3 (Reuters) - A parliamentary committee singled out U.S. tech group Palantir as an instance of Britain's over-reliance on U.S. companies in the public sector, calling it an "unacceptable point of weakness" in a report on Wednesday.
Palantir's NHS Contract and Vendor Lock-In Risks
Among Palantir's high-profile contracts is one with the National Health Service - valued at £330 million ($444 million) - that is designed to collate disparate data into a single system to support decision-making by healthcare professionals.
The contract was awarded in 2023 for seven years, but warning against vendor lock-in, Parliament's Science, Innovation and Technology Committee urged the government to exercise a break clause.
The parliamentary committee can only recommend and it is up to the government whether it follows its advice.
Concerns Over Values and Sensitive Data
'CLEAR MISMATCH WITH UK VALUES'
The 70-page report found that Palantir had increased its presence despite a "clear mismatch with UK values" and the possible risk to sensitive information.
It cited Palantir's supply of software for the U.S. military and immigration services, as well as its billionaire co-founder Peter Thiel's political views.
Political and Ethical Considerations
Thiel, an early supporter of U.S. President Donald Trump, has criticised the concept of a national health service, while the company has issued a manifesto making explicitly political arguments, the report said.
"The government's ... ambitions could be derailed at any time by a decision taken outside our shores based on the narrow interests of a foreign commercial or state actor," the committee's report added.
Responses to the Report
Palantir Defends Its NHS Contract
Palantir's British CEO Louis Mosley said the committee had accepted that the NHS contract was delivering, and it was therefore "frankly irresponsible" to call for its cancellation.
Speaking on BBC radio, he added Palantir had won the NHS contract through a fully open and competitive tender.
Criticism from Advocacy Groups
British non-profit Foxglove - which is coordinating a campaign against Palantir in the NHS - welcomed the report and called on the government to end the contract.
"MPs across parties, NHS staff, and a growing swathe of the public are united in their belief that a firm like this should have no part in our public services," it said in a statement.
Broader Implications for UK Digital Strategy
Government's Digital Transformation Plans Questioned
The committee's report concluded that the government lacked a coherent plan for the digital transformation of public services, calling its aim to save £45 billion annually through such changes "worryingly optimistic".
Recommendations for Future Policy
It also made broader recommendations for the government's digital strategy, including appointing a senior minister to lead it.
The government's health ministry did not immediately respond to a Reuters request for comment on the committee's report.
($1 = 0.7426 pounds)
(Reporting by Muvija M; Editing by Paul Sandle and Barbara Lewis)
