Palantir Technologies has appointed former Labour deputy leader Tom Watson to a senior executive role in the UK, as the company faces mounting criticism that could put a major contract at risk.

Watson, who left the House of Commons in 2019 after a long political career, will take up the position of Palantir's UK senior vice president. The appointment was confirmed by the software developer and major military vendor on Friday.

In his new role, Palantir said Watson will lead efforts to ensure that public sector contracts held by the company support British jobs across the country. The company described this as a priority that aligns with the stated aims of Prime Minister Andy Burnham, who has placed emphasis on ensuring government contracts deliver benefits for domestic employment.

Watson's appointment builds on an existing relationship with the company. He has served as an adviser to Palantir since 2024, meaning his move into a formal executive position represents a deepening of ties that were already in place rather than an entirely new connection.

The timing of the appointment comes as Palantir faces increased scrutiny over its involvement in a significant NHS contract. The company has attracted criticism in recent months connected to this deal, criticism serious enough that it has raised questions over whether the contract itself could be affected.

By bringing in a figure with Watson's political background and standing within the Labour movement, Palantir appears to be seeking to strengthen its position with government and the public at a moment of heightened attention on its UK operations. Watson's decades of experience in Westminster, including his time as deputy leader of the Labour Party, give him a level of familiarity with political and media pressures that could prove useful to the company as it navigates the current scrutiny.

The nature of the criticism facing Palantir specifically in relation to its NHS work reflects broader, ongoing debates about the role of large technology and data companies in delivering public services, particularly within health systems where questions about data handling and patient privacy tend to attract close public and political interest.

Watson's new responsibilities, as described by the company, will focus specifically on ensuring public contracts benefit British workers and communities more widely, rather than solely being confined to any single deal. This suggests the company intends his role to have a broader remit across its UK government relationships, beyond simply managing concerns tied to the NHS contract currently under scrutiny.

Palantir has grown significantly as a supplier to government and defence bodies in various countries, and its expansion into public sector contracts within the UK has followed a similar pattern seen elsewhere, often accompanied by debate over the appropriate role of private technology firms in handling sensitive public data.

The appointment of a senior political figure to help oversee the company's approach to public contracts suggests Palantir recognises the sensitivity of its current position in the UK market. Whether Watson's involvement will be sufficient to address the concerns already raised about the NHS contract remains to be seen, and further developments regarding the future of that deal are likely to attract continued attention in the coming months.

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