The UK government is actively considering the termination of its £330 million contract with US data analytics firm Palantir for the NHS Federated Data Platform (FDP). During a recent debate in Westminster Hall, Zubir Ahmed, a junior minister for the Department of Health and Social Care, confirmed that a break clause in the agreement allows for a reassessment next spring. Ahmed stated that if evaluations show other providers can offer better value and patient safety, the government will act accordingly.
The announcement follows intense criticism from MPs, unions, and campaigners regarding the platform's efficacy and transparency. Liberal Democrat MP Martin Wrigley led the opposition, presenting evidence that the FDP has failed to deliver on its promises. According to Wrigley, the contract initially outlined 13 core capabilities, yet only three or four have been partially delivered. He further noted that while 200 NHS trusts planned to adopt the system, only half are currently live, and a mere quarter report seeing benefits from its use.
Concerns Over 'Permanent Lock-In'
A significant point of contention involves the ownership of intellectual property (IP). Critics argue the current subscription model leaves the NHS with no tangible software assets upon termination. Wrigley explained that the contract allows Palantir to retain all IP rights for the specially written connecting software, creating a "permanent lock-in" and a single point of failure. He urged the government to use the renewal point to stage an exit and seek British providers to build a sovereign replacement, aligning with the Prime Minister’s recent science and technology policy.
Minister Ahmed defended the platform's necessity, stating that connecting disparate health data streams is critical for improving productivity and patient outcomes. He refuted claims that Palantir owns the underlying NHS data or products, asserting that the firm cannot utilize the data for its own purposes. However, he acknowledged the government is "no fan" of Palantir's political associations.
Transparency and Competition
The procurement process itself has faced allegations of opacity, with MPs demanding clarification on a 2019 meeting between Palantir founder Peter Thiel and former Prime Minister Boris Johnson. Questions have also been raised regarding the exclusion of other major tech vendors offering Spark-based platforms, such as Databricks and Google Cloud. As the break clause approaches, the debate continues over whether a shift toward domestic sovereign capabilities offers a more secure future for the NHS's digital infrastructure.
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