Labour Members Demand Burnham Cancel £330m NHS Contract With US Tech Firm

Pressure is mounting on Prime Minister Andy Burnham to decide the future of the NHS’s controversial contract with US technology company Palantir. Labour MPs and campaigners want the government to use a contractual break clause to end the deal, but no decision to cancel it has yet been announced. (WIRED)

The dispute raises a question many NHS patients are likely to have: does Palantir actually have access to their medical records, and what would happen if the government ended the contract?

What’s actually true about the £330m NHS contract?

The contract is for the NHS Federated Data Platform (FDP), a digital system designed to connect information held across different NHS organisations. Its purpose includes helping hospitals coordinate care, manage waiting lists, improve theatre use and support operational planning. Palantir leads the consortium providing the platform. (The Guardian)

The headline figure of £330 million refers to the potential value of the seven-year arrangement, rather than money that has necessarily already been paid to Palantir. Parliamentary answers confirm that the contract contains break clauses, with the initial term ending in 2027 and a decision about its continuation still pending. (Parliament Questions and Statements)

That distinction matters because some online discussion has presented the situation as though the government has already decided to hand over £330 million. The contract remains under review.

Why are Labour members calling for it to be cancelled?

Opposition to Palantir centres on several issues, including patient trust, data governance, the company’s work for overseas governments and concerns about long-term dependence on a major US technology supplier.

The House of Commons Science, Innovation and Technology Committee recommended that the government use the February 2027 break clause and either develop an NHS-owned replacement or seek an alternative from UK-based suppliers. The committee also called for a fully costed exit plan. (UK Parliament)

Other MPs have raised concerns about whether the evidence for the platform’s benefits is sufficiently strong and whether NHS organisations could become too dependent on one supplier. These are political and policy arguments rather than evidence that patient records have simply been handed over to a US company.

Does Palantir own NHS patient data?

No. That is an important distinction.

Government guidance says the NHS FDP operates under NHS control, with access to information governed by controls and authorised purposes. NHS officials have also stated that Palantir does not own NHS data or have permission to use or share it for its own purposes. (Leicester City Council Cabinet)

However, questions about what identifiable information contractors can access, under what legal authority and how that access is monitored remain part of the wider parliamentary debate. The Commons technology committee specifically asked the government to clarify these points. (UK Parliament)

So the issue is not simply “Has Palantir got everyone’s NHS records?” It is about the governance and security arrangements surrounding a major system that processes highly sensitive health information.

What happens if Burnham ends the deal?

Cancelling or declining to extend the contract would not mean the NHS suddenly loses its digital records. The practical challenge would be replacing the technology and transferring functions safely without disrupting patient care.

The government has already been developing wider plans for NHS digital infrastructure, including a single patient record and changes to NHS England’s responsibilities. Those reforms make the question of how health data systems fit together particularly significant. (GOV.UK)

As of 21 September 2026, the Department of Health and Social Care said the Palantir contract was being reviewed and that the outcome would be announced: “in the normal way in due course”. (Parliament Questions and Statements)

Common misconceptions to avoid

One misconception is that the £330 million is a bill that has already been paid. It is the potential contract value.

Another is that ending Palantir’s involvement would automatically mean abandoning the FDP. A replacement system could potentially be developed or procured, although the government would need to manage cost, security, continuity and implementation.

It is also too simplistic to say the technology has produced no benefits. The government says the FDP has helped support additional procedures, cancer pathways and faster hospital discharge, although the scale and attribution of those benefits remain part of the wider debate. (Parliament Questions and Statements)

What should NHS patients do now?

For most patients, there is no immediate action required because of the political dispute.

If you are concerned about how your NHS information is used, check current guidance from the NHS and the National Data Guardian rather than relying on social-media claims. The government has also published updated information about access to NHS data and the safeguards surrounding external uses. (GOV.UK)

The key date to watch is the government’s forthcoming decision on the contract’s break or extension provisions. That decision should make clear whether Palantir remains involved and, if not, how the NHS intends to transition to an alternative.

Key takeaways

The £330 million Palantir NHS deal is under renewed political pressure, but it has not been cancelled. The government is reviewing the contract ahead of its next decision point.

The main issues are not simply whether a US company is involved, but how NHS data is governed, whether the technology is delivering sufficient benefits, the cost of changing supplier and how patient care would be protected during any transition.