The high-profile £330 million contract between the NHS and US technology firm Palantir to build the Federated Data Platform (FDP) has become mired in controversy. Internal government briefings have revealed that senior officials were concerned the company’s controversial reputation could impede the service's deployment across the health system, adding fresh intensity to the debate over private tech's role in managing public health data.
Internal Warnings on Public Perception
The deal, first awarded in 2023, places Palantir at the core of the FDP, an ambitious project designed to integrate disparate clinical and administrative records across NHS trusts. However, disclosures under the Freedom of Information Act have highlighted officials' grave concerns raised in mid-2025.
A confidential briefing prepared for Health Secretary Wes Streeting ahead of a June 2025 meeting with Palantir’s European head explicitly warned that public perceptions of Palantir were hindering the FDP rollout. Officials noted that at that time, less than half of NHS regions had adopted the platform, suggesting reputational issues were limiting progress.
This internal acknowledgement directly contradicts government assurances that the FDP rollout is proceeding smoothly, raising questions about whether initial reservations were properly addressed.
The Source of Palantir's Contentiousness
Palantir, founded by billionaire Peter Thiel, has long attracted scrutiny due to its roots in data analytics for intelligence and defence, notably its work with US agencies like Immigration and Customs Enforcement (ICE).
In the UK, critics argue that the firm’s military and security background creates an ethical and reputational mismatch with the values of the NHS. The British Medical Association (BMA) has voiced strong opposition, warning that many doctors and staff would refuse to use parts of the system due to concerns over data ethics and associations with surveillance activities abroad.
Palantir executives, including UK boss Louis Mosley, have vigorously defended the firm, accusing critics of “choosing ideology over patient interest” and insisting the company's platforms protect patient privacy while the NHS retains full control of the data.
Slow Adoption and Deployment Targets Missed
The deployment has been notably slower than anticipated. By the end of 2025, fewer than half of NHS England’s 42 integrated care systems had started using the technology. Updated figures in early 2026 showed 151 NHS organisations using the platform, still significantly short of the health officials' target of 240 by the end of 2025.
Critics contend this sluggish pace is due not just to technical challenges but to ongoing resistance from healthcare professionals and local decision-makers, a view supported by the internal briefing’s reference to the reputational issues causing distrust.
Despite reassurances from Palantir and the Department of Health that the FDP includes robust privacy protections, concerns about patient data sovereignty remain high. NGOs and civil rights groups have called for greater transparency and public scrutiny, highlighting the opacity of the contract documentation.
Large portions of the original contract published by NHS England were heavily redacted, particularly concerning data protection and usage terms. Campaigners, including the Good Law Project, have launched legal action to force the disclosure of these sections, arguing the current form fails to meet transparency standards for major public data platform procurements.
Political Backlash and Ethical Scrutiny
The controversy has generated a political storm. Cross-party MPs have called Palantir a “highly questionable organisation” and demanded the government reconsider the contract, citing a value-for-money risk due to its reputational baggage. Former Conservative minister David Davis has been a vocal critic, suggesting widespread refusal to adopt the system among GPs and doctors.
Political scrutiny has been further complicated by the backdrop of past engagement, including Prime Minister Sir Keir Starmer’s early 2025 visit to Palantir’s US headquarters alongside Lord Peter Mandelson, whose lobbying firm previously represented Palantir’s interests.
Government and Company Defence
Both the Department of Health and Social Care (DHSC) and Palantir defend the project, stressing that the platform is already delivering benefits, such as improved care coordination and productivity, and that the procurement process was rigorous. DHSC spokespeople strongly assert that the NHS maintains firm control of the data, which cannot be used by Palantir outside strict contract terms. Palantir highlights the technology's potential to improve service delivery and manage backlogs.
Wider Implications for Public Trust
The Palantir controversy underscores the tension between public trust, digital transformation, and the role of private tech in public services. While data-driven analytics are seen as key to modernising the NHS, the powerful data capabilities and security experience of firms like Palantir also fuel suspicion when applied to sensitive health data.
As the FDP rollout progresses in 2026, the resolution of this episode will be closely watched. It is poised to set a critical precedent for future large-scale tech contracts in UK healthcare and shape broader public attitudes toward the use of private contractors in the NHS.
