Andy Burnham became prime minister today, Monday July 20th 2026, with five reported tech policies that look set to reshape the UK IT sector and its contractors.
The new PM has shelved plans for digital ID cards, a move that APSCo, the Association of Professional Staffing Companies, told Contractor UK was “highly likely to create IT contractor [job] opportunities.” The decision ends years of speculation over a national identity scheme.
“Andy Burnham becomes PM today, dropping digital ID and sidelining Palantir in five tech policies.”
Palantir, the US data analytics firm that has held lucrative NHS contracts, is being pushed out of public sector work under Burnham. The shift is a potential worry for IT contractors currently on temporary NHS projects involving Palantir systems, but it opens the door for small UK tech suppliers and rival integrators to compete.
Burnham’s strategy also includes a renewed focus on homegrown artificial intelligence, a clampdown on VPN use, and a tax reversal designed to revive contractor hiring. The tax change is expected to boost demand for temporary IT staff after years of uncertainty under IR35 reforms.
The five policies together signal a sharp departure from the previous government’s approach. For IT contractors, the message is clear: Palantir’s grip on the public sector is loosening, while opportunities in digital ID and UK-AI projects could emerge. The VPN clampdown may affect remote workers, but the tax reversal is the most tangible incentive for companies to take on contractors again.
Burnham’s immediate focus will be on implementing these measures, with the tech industry watching closely to see how quickly the promised opportunities materialise—and whether the fallout from Palantir’s exit hits those on the front lines of NHS IT.