Watson Defends Palantir Contracts Amid UK Political Backlash

Palantir's expanding role in British public services has intensified political scrutiny after former Labour deputy leader Tom Watson defended the company's government contracts on October 9, 2026. The company's new UK senior vice-president argued that public procurement should follow the rule of law, as lawmakers questioned its healthcare technology, access to sensitive data, and influence over government systems.

According to The Guardian, Palantir holds a seven-year contract worth up to £330 million for the NHS Federated Data Platform. The Nerve reported that the company has £670 million in UK government contracts, while The Guardian reported annual UK turnover of £427 million.

Watson, who advised Palantir part-time from 2024 before taking his senior vice-presidential position, made his defense in an interview with the BBC's Political Thinking with Nick Robinson podcast. He has taken a leave of absence from the House of Lords and relinquished his parliamentary pass while working for the company.

Addressing concerns raised by his former Labour colleagues, Watson challenged opponents to distinguish lawful procurement decisions from political campaigns against the technology company.

"One of the things I'd say to my former colleagues is: do you want to let the rule of law lead procurement practice, or do you want mob rule to lead procurement practices? Because you get yourself in a lot of trouble if you go down on the latter one." Watson said.

Watson also defended the company against criticism linked to its work in Israel, where Palantir has supplied technology to the military. Its involvement in Israeli operations and US immigration enforcement has contributed to protests and political opposition in Britain.

"I think we are very targeted by the people that are targeting Israeli companies. We're not an Israeli company, but because of our work in Israel we found ourselves in the middle of the row of the Gaza protests." Watson said.

Asked about cooperation with a potential Reform UK government on immigration enforcement, Watson indicated that Palantir would work with such an administration if asked, despite acknowledging that the company did not currently operate in that sector.

The controversy has also centered on Watson's correspondence with Labour MP Clive Lewis, a prominent critic of Palantir. At a Labour Party conference fringe event in September, Lewis read from a letter in which Watson cataloged his criticism of the company across parliamentary proceedings, interviews, opinion articles, and social media.

According to The Nerve, Watson's letter counted almost 130 occasions on which Lewis had discussed Palantir since 2020, including around 50 during the preceding year. Lewis said the detailed account raised concerns about the company's monitoring capabilities and its relationship with political critics.

"They're saying: We are watching you. We are monitoring you. And that's what we do.

Your card is marked." Lewis said.

Lewis also argued that Watson's move into the private sector raised questions about the separation between public service and corporate interests. He has challenged the appropriateness of a former senior Labour politician taking a prominent position at a company seeking substantial government business.

"You need to either commit yourself to public service or you need to commit yourself to working for them, and you can't do both and you shouldn't do both." Lewis said.

Palantir has defended its contribution to British employment and public services. In a published response reported by AOL, Watson said the company employed nearly 1,000 people in Britain, with an average workforce age below 30, and that its technology supported healthcare professionals, the armed forces, and police.

The company's claims about NHS performance have drawn separate scrutiny. Watson's letter stated that the Federated Data Platform was operating at 142 NHS trusts, with 137 reporting benefits. However, The Register reported that the Office for Statistics Regulation had urged NHS England to qualify its public statements because the available comparisons could not establish that the software itself caused the reported improvements.

Data obtained by campaign group Foxglove linked an inpatient coordination tool associated with the platform to 111,589 additional patients undergoing operating theatre procedures. However, 13 of the 41 trusts using the tool recorded fewer operations after its introduction, with staffing, case complexity, and bed capacity identified as possible contributing factors.

Foxglove also found that Chelsea and Westminster Hospital NHS Foundation Trust accounted for 84 percent of the reported reduction in outpatient waiting lists across 16 trusts using the relevant tool. The statistics regulator had called for clearer communication about the limits of cause-and-effect conclusions.

Labour MP Chi Onwurah, chair of Parliament's Science, Innovation and Technology Committee, has warned that Britain risks becoming too dependent on one technology supplier. The committee has recommended against renewing the NHS contract and urged the government to develop domestic technological capabilities.

"The key issue is we can't be so dependent on one company. It's a US company, subject to US legislation regarding access to our data." Onwurah said.

Palantir is also contesting London Mayor Sadiq Khan's opposition to a £50 million contract involving artificial intelligence in Metropolitan Police investigations. Its NHS agreement and wider presence across British public services remain under scrutiny from lawmakers, unions, and technology campaigners.