UK reviews Palantir NHS contract amid pressure to trigger break clause

Britain is conducting a full review of its National Health Service contract with Palantir (PLTR), the US data analytics company, as political pressure mounts on the government to invoke a break clause when the deal's initial term expires in early 2027.

Liz Kendall, technology minister, said on Tuesday the review would determine whether to extend the £330mn ($441mn) agreement under provisions allowing the government to continue it for up to seven years, or to terminate it.

"The current health secretary is reviewing every single aspect of that (contract) to make sure we get the right deal for Britain," Kendall told Times Radio, pointing to concerns over patient confidentiality, public trust and reliance on a US supplier.

The contract, awarded in 2023 to build a platform linking NHS data, runs until early 2027, at which point ministers must decide whether to extend it.

A parliamentary committee last week urged the government to trigger the break clause and end the contract, warning that Palantir's role represented an "unacceptable point of weakness" and highlighting the risks of dependence on a small number of US technology firms.

The committee said the company's expanding footprint in the public sector raised concerns about reliance on overseas suppliers and the resilience of critical services, though it noted that officials had reported benefits in areas including waiting list management, operations and hospital discharge planning.

The deal has also attracted scrutiny because Palantir supplies software to the US military and immigration authorities, and over the political views of Peter Thiel, the company's billionaire co-founder and an early backer of President Donald Trump.

Campaigners and unions have raised concerns about the handling of sensitive health data. Last month, the Financial Times reported that NHS officials had proposed granting some external staff, including Palantir personnel, broad administrative access to identifiable patient data on parts of the system.

Palantir has said its software helps improve patient care and efficiency across the NHS. Neither the company nor NHS England immediately responded to requests for comment.

Separately, Sadiq Khan, the mayor of London, last month blocked a £50mn police contract with Palantir, citing concerns about value for money and whether companies' ethics should be weighed in public procurement decisions.