- MPs say reliance on Palantir leaves the UK exposed to foreign influence.
- Committee urges ministers to consider ending the NHS contract in 2027.
- Report questions whether public sector systems are ready for wider digital reforms.
Britain's growing dependence on Palantir has come under fresh scrutiny after MPs warned that the US technology company's expanding role across public services could create a significant vulnerability for the country.
A report from the Commons Science, Innovation and Technology Committee said the government's ambitions to build a modern digital state risk being undermined by an increasing reliance on a small number of overseas technology suppliers. The warning places Palantir, which already works with the NHS and other public bodies, at the centre of a wider debate over UK digital sovereignty, public sector data and the future of government technology infrastructure.
A question of control
Palantir, founded in 2003, specialises in data analytics software used by governments, military organisations and major institutions around the world. In Britain, its most prominent role is within the NHS, where it operates a data platform designed to bring together information from different parts of the health service, helping hospitals analyse information and manage services more efficiently.
Supporters argue the technology has helped improve decision-making and streamline operations. The NHS reportedly said the platform has delivered significant benefits, including improving care coordination, speeding up cancer diagnoses and helping more patients receive treatment each month.
Palantir has maintained that its appointment followed public procurement rules and that all NHS data remains under the control of the health service.
However, MPs said the growing concentration of critical public sector data systems in the hands of a small number of foreign technology providers raises longer-term concerns. According to the committee, dependence on US-based suppliers could leave key public services vulnerable to decisions made outside Britain.
The report stated that ambitions to digitally transform public services could be left "at the mercy of foreign actors", as quoted in a news report.
Breaking the cycle
The committee has urged the government to use a break clause available in the NHS contract in 2027 and explore either a UK-based alternative or an in-house system.
MPs argued that becoming locked into a single supplier is not inevitable and said government procurement policies should do more to support domestic technology capabilities.
Committee chair Dame Chi Onwurah reportedly said it remains unclear how the government's vision of creating a "truly digital state" will be delivered. She warned that without clear targets and a detailed implementation plan, the strategy risks falling short of its objectives.
The report also highlighted wider concerns about the condition of government data systems. MPs said longstanding issues around data quality and infrastructure must be addressed before ministers can successfully deliver broader digital reforms, including Labour's proposed digital identity plans.
For now, the debate extends beyond one company. The committee's intervention raises a broader question facing Westminster: whether Britain's digital future should be built on technology supplied from abroad or on systems developed closer to home.
