Tom Watson Joins Palantir as Ministers Face Pressure Over Contracts
Former Labour deputy leader Tom Watson has joined Palantir as senior vice-president and warned ministers could face "a lot of trouble" if decisions on its government work are driven by "mob rule" The Guardian.
He spoke on the BBC podcast Political Thinking with Nick Robinson. He said public contracts should follow the established procurement process, the formal rules for choosing suppliers, rather than pressure campaigns.
Palantir is a US tech firm co-founded by billionaire Peter Thiel The Guardian. It has supplied AI-powered software to the Israeli military and to the White House's ICE immigration enforcement operation. It reported £427m in annual turnover in the UK.
In Britain, Palantir holds contracts with the NHS and the Ministry of Defence BBC. It won a £330 million ($441 million) NHS software contract in 2023. Prime Minister Andy Burnham is under pressure from Labour MPs and unions to remove Palantir, including from that NHS deal.
A second dispute centres on London policing. Palantir is in court against London mayor Sadiq Khan over his block on a £50m contract to use its AI in Metropolitan Police investigations. The case brings together procurement law, mayoral authority and police technology policy.
Watson served as defence minister and minister for digital engagement under Gordon Brown. He stepped down from parliament in 2019. He worked as a part-time adviser to Palantir from 2024 and joined full-time on 18 September 2026 BBC.
Palantir said Watson has taken a leave of absence from the House of Lords and relinquished his parliamentary pass while working for the company in London. It said part of his role would be to deepen social and economic value through better public services, jobs and skills.
When announcing the post, Watson called Palantir "the most interesting company on the planet". He also said he would work with a Reform UK government on immigration crackdowns if that situation arose.
Scrutiny in Westminster extends beyond Watson. More than 30 former UK officials work at Palantir. Global Counsel, Peter Mandelson's former lobbying firm, counted Palantir as a client. Labour MP Chi Onwurah chairs the science, innovation and technology committee.
The broader context here is procurement as a tool of policy at home and abroad. The central question is not only whether Palantir's software works, but what oversight, data rules and contract terms apply in health and defence systems. NHS data systems, Defence Ministry cloud and analytics networks, and police investigative tools each carry different risks. Relying on one supplier across all three increases operational dependence.
Looking at what this means for Burnham, the government is pulled in two directions. Unions and backbench MPs seek termination or non-renewal. Termination could bring legal exposure and disruption to services. Retention could bring political cost while the court case with City Hall proceeds. Watson frames the choice as proper process versus public pressure. Critics frame it as a former minister defending future revenue. Both framings will shape committee inquiries, court arguments and the next spending review.
