When Andy Burnham walks into Downing Street as Labour leader later this month, one of his most consequential early decisions will arrive with little fanfare. It concerns a seven-year, 330 million pound contract between NHS England and Palantir Technologies, the US defence and intelligence software giant.
For nine years as Mayor of Greater Manchester, Burnham kept Palantir at arm’s length. The Combined Authority issued no contracts to the company. Greater Manchester Police confirmed it had no Palantir arrangement in the past five years. Now, as he prepares to lead the country, media reports suggest he intends to extend that stance across all of UK government.
A Different Approach from Starmer
The shift marks a sharp departure from Keir Starmer’s administration, which actively courted US-based AI companies, championed by former UK ambassador to Washington Peter Mandelson. Burnham’s team, including former tech minister Josh Simons alongside researchers Antonio Weiss and Martha Dacombe, is reportedly developing a new AI strategy that prioritises British companies and workers.
When asked directly about the Palantir contract, a Burnham spokesperson emphasized principles around value for money and data protection, notably avoiding endorsement of the current arrangement. The message was diplomatic but clear: this government will scrutinise decisions the previous one took for granted.
The precedent exists in Greater Manchester’s NHS leadership. Rather than adopt the NHS England-mandated Federated Data Platform built on Palantir’s Foundry software, local NHS leaders spent six years building their own analytics infrastructure. That homegrown system became proof that effective data management doesn’t require Palantir at all.
The Defence Company Problem
Critics like Duncan McCann from the Good Law Project have zeroed in on a fundamental tension. “A defence company has inherently different values than a healthcare organisation like the NHS,” he told Al Jazeera. Palantir’s roots in US military and intelligence contracting create an uncomfortable fit with an institution built to treat patients, not gather intelligence.
This concern extends beyond one company. Most US AI firms now supplying British government departments share similar lineages in defence contracting. For sceptics, that shared DNA taints the entire category, raising questions about whether foreign military-grade software should underpin civilian public services at all.
In his first major Westminster speech since returning as an MP, Burnham signalled that social value must weigh more heavily in procurement decisions. Those close to him suggest the reasoning is partly ethical but also deeply political. There’s genuine concern that “unfettered tech boosterism” alienates voters already anxious about how much of the British state now runs on American software.
The NHS contract represents the most visible battle, but it won’t be the only one. Palantir has launched a High Court challenge against Mayor Sadiq Khan’s decision to block a 50 million pound Metropolitan Police contract, arguing it stifles free speech. Khan’s office later approved a smaller arrangement, but the underlying tension remains unresolved.
The Timeline That Matters
For campaigners who have spent years pushing greater scrutiny of Palantir’s role in British public life, this moment could finally tip the scales. The NHS break clause falls in March 2027, but a decision must be made by December. That gives Burnham just months to signal whether this government sees Palantir’s future in Britain differently than the one before it.
The ramifications extend well beyond the NHS. How Burnham handles this single contract will telegraph his broader philosophy on technology, sovereignty and the role of American defence contractors in British public institutions. It’s a choice that defines whether this new government truly breaks from its predecessor’s tech embrace or merely adjusts the dial.
Source: Al Jazeera
Will Burnham’s decision represent genuine policy change, or merely political theatre designed to appease tech sceptics?
