Britain has initiated a full review of its contract with Palantir for services to the National Health Service, as ministers face mounting calls to use a contractual break clause when the initial term ends in early 2027.
Technology minister Liz Kendall said the review will determine whether ministers should extend the £330 million ($441 million) agreement under clauses that allow the government to continue the arrangement for up to seven years, or whether to end it at the first available opportunity.
"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, highlighting the issues under consideration - including patient confidentiality, public trust and reliance on a U.S. supplier.
The contract, awarded in 2023 to build a platform linking NHS data, runs until early 2027, at which point the government must decide whether to trigger the break clause or extend the arrangement.
Pressure to end the deal has intensified following a report from a parliamentary committee last week that urged ministers to activate the clause and terminate the contract. The committee described Palantir’s role in the health service as an "unacceptable point of weakness" and warned of risks tied to dependence on a small number of U.S. technology firms.
While the committee raised concerns about resilience and reliance on overseas suppliers, it also acknowledged that officials had reported benefits from the arrangement in several operational areas, including waiting list management, hospital operations and discharge planning.
Campaign groups and trade unions have expressed worries about the handling of sensitive health data. The Financial Times reported last month that NHS officials had proposed giving some external staff - including Palantir personnel - broad administrative access to identifiable patient data on parts of the system.
Palantir has defended its role, saying its software helps to improve patient care and efficiency across the NHS. As of the time of reporting, neither Palantir nor NHS England had immediately responded to requests for comment.
The deal has attracted additional scrutiny because Palantir supplies software to the U.S. military and immigration authorities, and because of public attention on the political views of its billionaire co-founder, Peter Thiel, an early supporter of President Donald Trump. Those links have been cited by critics as part of broader concerns about dependence on particular overseas technology providers.
Separately, the mayor of London last month declined to proceed with a separate police contract with Palantir worth £50 million, citing doubts about value for money and whether the ethical stance of suppliers should influence public procurement decisions.
Currency conversion cited in the contract coverage places $1 at 0.7486 pounds.
The government review will now form the basis for the 2027 decision point - whether to continue the platform under the existing contractual framework for a longer term or to exercise the break clause, bringing the current arrangement to an end.