A parliamentary committee has warned that the UK is becoming too dependent on US technology firm Palantir for key public services, raising concerns about data security, government resilience and long term control of critical systems.
The Commons Science, Innovation and Technology Committee said reliance on a small number of foreign technology providers creates vulnerabilities at a time when the government is pushing ahead with plans to modernise public services through digital technology.
Palantir, a US based data analytics company, has secured contracts with organisations including the NHS and the Financial Conduct Authority. The company specialises in analysing large volumes of information to help organisations make decisions, improve operations and identify patterns within complex datasets.
Supporters argue that the technology has helped public bodies improve efficiency and coordinate services more effectively. Within the NHS, Palantir's platform is used to bring together information from across different parts of the health service to support planning and patient care.
However, the committee said the growing reliance on the company creates what it described as an "unacceptable point of weakness" in the UK's digital infrastructure.
Concerns over long term dependence
MPs warned that concentrating critical public sector functions with a small number of overseas suppliers could leave the UK exposed if political, commercial or security circumstances change in the future.
The report argues that digital transformation should not result in public services becoming locked into a limited number of providers. Instead, ministers were urged to develop stronger domestic capabilities and encourage greater competition within the technology sector.
Committee members also questioned whether the government's wider digital ambitions can be achieved without a clearer strategy for managing public sector data and modernising outdated systems.
NHS contract remains controversial
Palantir's involvement with the NHS has attracted debate since the company secured a major contract to provide data platform services.
Critics have raised concerns about privacy, transparency and the role of large technology firms in handling sensitive public sector information. Campaigners have argued that stronger safeguards and oversight are needed whenever patient data is involved.
Palantir has consistently stated that NHS data remains under the control of the health service and that its systems operate within agreed legal and contractual frameworks.
NHS leaders have also defended the partnership, saying the technology has helped improve coordination across services, speed up diagnosis and support patient treatment.
Calls for greater technology sovereignty
The committee's report recommends that the government reduce its dependence on large foreign technology providers and consider developing more UK based alternatives for critical public sector systems.
Committee chair Dame Chi Onwurah said the UK should aim for greater technology sovereignty in key areas of government operations.
She argued that the country needs a clearer and more measurable plan for becoming a modern digital state while ensuring that essential services are not overly reliant on a handful of overseas suppliers.
The report also highlights concerns about the condition of existing public sector technology infrastructure, suggesting that further improvements will be needed before wider digital reforms can be delivered effectively.
What happens next
The committee has called on ministers to provide greater detail on their long term digital strategy and to consider alternatives before existing contracts reach key review points.
While there is no immediate change to Palantir's role within public services, the report is likely to intensify debate around government technology procurement, data governance and how much control the UK should retain over the systems that support critical public services.
As government departments continue to expand the use of digital platforms and artificial intelligence, questions around security, accountability and technological independence are expected to remain high on the political agenda.
