Andy Burnham Reportedly Ready To Drop Palantir From NHS Over Ties To Israeli Military and ICE

Andy Burnham is reportedly preparing to distance the NHS from US technology company Palantir if he becomes Britain's next prime minister later this month, putting an end to the firm's £330 million NHS contract because of concerns over its role in government technology and artificial intelligence strategy.

Sir Keir Starmer's resignation leave Burnham widely expected to assume the party leadership and enter Downing Street on 20 July if no challenger emerges. While no final decision has been made on Palantir, Burnham's previous refusal to award the company contracts during his nine years as Greater Manchester mayor is said to be shaping his thinking.

Palantir's NHS Contract Under Shaky Grounds

Palantir currently operates the NHS Federated Data Platform, a seven-year contract worth £330 million that was signed in 2024 to help hospitals manage patient data, reduce waiting times and improve operational efficiency.

According to NHS figures cited by sources, more than half of NHS trusts in England now use Palantir's technology. The system has reportedly contributed to more than 110,000 additional operations since the programme began. An internal NHS memo also suggested hospitals piloting the platform increased operating theatre utilisation by around 12 per cent, while several trusts recorded faster cancer diagnoses and shorter discharge delays.

Supporters argue that abandoning the platform could disrupt improvements already being delivered.

Shadow Health Secretary Stuart Andrew warned that ending the agreement would force Burnham to justify putting politics ahead of patient care.

'If Andy Burnham tears up a programme that is improving patient care, he will have to explain why he chose politics over patients,' Andrew said, arguing the NHS should continue using leading technology if it improves outcomes.

Shadow Business Secretary Andrew Griffith struck a similar note, saying artificial intelligence tools such as Palantir function primarily as optimisation systems and questioning whether removing the software would ultimately affect patient care.

Ties to Israeli Military and ICE

The political pressure surrounding Palantir's contract with NHS extends well beyond healthcare performance.

Left-wing Labour MPs, trade unions and campaign groups have repeatedly called for the NHS to sever ties with the company because of its commercial relationships with the Israeli Defense Forces and US Immigration and Customs Enforcement, commonly known as ICE. Critics also point to Palantir founder Peter Thiel's longstanding support for Donald Trump and previous remarks criticising the NHS, while chief executive Alex Karp has publicly backed Trump in recent years.

Palantir has publicly acknowledged that it provides AI and data analytics software to the Israeli Defense Forces (IDF). Following the start of the Israel–Hamas war in October 2023, the company announced an expanded strategic partnership with the Israeli military.

At the same time, the company supplies software platforms that help ICE organise and analyse large amounts of data during immigration enforcement operations. These tools have reportedly been used to identify immigration suspects, link records from multiple databases, assist investigations, and support detention and deportation operations.

Labour Criticises Palantir Contract

For some Labour MPs, trade unions and campaign groups, Palantir's work with both the IDF and ICE raises ethical concerns about whether the NHS should partner with the company, regardless of whether its software improves healthcare operations.

Earlier this year, 21 Labour MPs signed a parliamentary motion criticising the Ministry of Defence for awarding Palantir a £240 million contract without a competitive tender process.

Technology Secretary Liz Kendall has also faced repeated questions over whether the company should continue working with Britain's healthcare system, although she stopped short of explicitly calling for its removal.

Burnham has not publicly committed to cancelling the NHS agreement.

However, allies told sources his review of Britain's AI strategy reflects growing concern that what one aide described as 'unfettered tech boosterism' risks alienating voters. In a keynote speech earlier this week, Burnham also argued that government procurement should place greater emphasis on social value when awarding contracts.

Burnham Needs to Cut Palantir Before December

The Palantir agreement includes a contractual break clause due next March. If a future Burnham government chooses not to continue the arrangement, ministers would need to notify the company by December before the contract automatically renews.

Health Secretary James Murray has previously described the ongoing review as 'part of normal business,' and neither Burnham nor Palantir has confirmed that the contract will be terminated. Until any formal decision is announced, reports that the NHS will end its partnership with the US software company remain unconfirmed.