Palantir Technologies has secured a £330 million contract to overhaul data handling for the UK National Health Service, spaking a fierce debate within the Labour Party. Critics on the party’s left argue the deal threatens privacy and democratic norms, while supporters claim the AI platform is essential to modernise an ageing NHS infrastructure.

£330 million NHS contract fuels Labour infighting

The NHS agreement, announced in early 2024,places Palantir at the centre of a growing ideological split in Labour. Former leader Jeremy Corbyn and Green Party leader Zack Polanski have publicly denounced the partnership, saying it could give a US firm unprecedented access to sensitive patient records. As the source report notes, the controversy “highlights a deeper ideological split within Labour” over how to balance security, innovation and civil liberties.

Jeremy Corbyn and Green Party warn of democratic erosion

Corbyn’s criticism focuses on Palantir’s co‑founder Peter Thiel, whose political donations and ties to the CIA are cited as evidence of a “deeply problematic partner”. The Green Party echoed these concerns, warning that the contract could “privatise and jeopardise the integrity of the health service”. Both factions argue that allowing a foreign tech company to process NHS data undermines public accountability.

Mayor Sadiq Khan blocks £50 million Met Police deal

In a related move,London Mayor Sadiq Khan halted a proposed £50 million contract between the Metropolitan Police and Palantir, citing “value misalignment”. Palantir’s UK leadership responded that the decision “prioritises politics over public safety”. The mayor’s intervention underscores the broader unease about the firm’s role in UK law‑enforcement analytics.

Palantir claims AI can rescue outdated NHS data systems

Palantir argues its platform can stitch together fragmented NHS databases , enabling faster decision‑making and potentially savving lives. The company says its technology has already modernised data flows in defence and other government sectors, and that similar benefits will flow to health services. According to the source, Palantir’s UK executives contend that “its AI analytics are essential for modernising outdated systems”.

Unanswered: How will the NHS contract be reviewed and who decides?

The contract is slated for review later this year, but the process remains opaque. Key questions include whether an independent watchdog will assess data‑security safeguards and how much influence Labour ministers will have after Keir Starmer’s meetings with Palantir executives were scrutinised for possible breaches of the ministerial code. The source notes that the debate “is set to reignite, forcing a reckoning between ideological opposition and pragmatic technological needs”.