The NHS's £330 million contract with US tech giant Palantir, used to speed up cancer diagnoses and free up hospital beds, may be on the chopping block under the next prime minister. Andy Burnham, the Labour politician set to succeed Sir Keir Starmer as early as July 20, is reviewing the government's artificial intelligence strategy with a sceptical eye. An aide says Burnham believes "unfettered tech boosterism" is turning off voters, and he wants social value to play a larger part in contracts.
Burnham is no stranger to Palantir. During his nine years as Greater Manchester mayor, from 2017 to 2026, he did not grant the company a single contract. Greater Manchester Police also confirmed it had no deal with Palantir in the past five years. This record informs his thinking as he considers whether to cut ties with Palantir two years into its seven-year, £330m NHS deal.
“Explaining Andy Burnham's likely approach to NHS contracts with Palantir and his wider vision.”
The contract in question is the Federated Data Platform (FDP), which uses Palantir's technology to help hospitals manage operations. It has led to faster cancer diagnoses, increases in operating theatre use, and fewer delays in discharging patients. However, Labour MPs and trade unions have demanded the government strip Palantir of the deal because of concerns about its work with the Israeli military and US immigration authorities.
Critics warn that ditching Palantir would harm patients. Stuart Andrew, the shadow health secretary, said: "If Andy Burnham tears up a programme that is improving patient care, he will have to explain why he chose politics over patients." Andrew Griffith, the shadow business secretary, added: "Does Andy Burnham think the NHS is so optimal it cannot be improved, or does he accept that kicking out Palantir will have a trade-off which is measured in more Brits dying?"
Burnham's broader vision for government is outlined in his manifesto-by-proxy, "The Productive State", which calls for "major, even fundamental changes in British society" to overcome "long years of stagnation and decline". In a landmark devolution speech, he declared Westminster is "broken" – language previously associated with right-wing populists like Nigel Farage. UnHerd noted that Burnham, like Farage, taps into a volatile public mood demanding reform.
For UK readers, the Palantir decision is a test of Burnham's priorities: efficiency versus ethics. If he cancels the contract, the NHS could lose concrete operational gains. But voters who object to Palantir's military connections may welcome a more values-driven approach. The debate also highlights the growing tension between public service and big tech.
Q: Who is Andy Burnham? A: Andy Burnham is a Labour politician who served as Greater Manchester mayor for nine years and is set to become prime minister in July 2026, succeeding Sir Keir Starmer after a landslide by-election victory.
Q: What is Palantir and why is it controversial? A: Palantir is a US tech company that runs the NHS's Federated Data Platform, a £330m deal to improve hospital operations. It is controversial due to its work with the Israeli military and US immigration authorities, prompting calls from Labour MPs and unions to scrap the contract.
Q: What would happen if Burnham cancels the Palantir contract? A: Cancelling the contract two years early could mean losing efficiency gains like faster cancer diagnoses and increased operating theatre use, but Burnham argues for more ethical and socially valuable tech partnerships. No final decision has been made.
Burnham is expected to become prime minister around July 20. He has not made final decisions about existing contracts, but his mayoral record suggests he may not renew the Palantir deal. He will also outline his wider AI strategy, which aides say will prioritise social value over "unfettered tech boosterism".