One of the first critical decisions for Andy Burnham, who is running for Labour Party leadership and is expected to take the prime minister's seat on 17 July, will be the £330 million contract between US-based defence and intelligence software company Palantir and the National Health Service (NHS).
A spokesperson for Burnham told Al Jazeera: "We will not comment on individual government procurement contracts or companies, and there are legal processes that must be followed." However, the spokesperson stressed that Burnham's guiding principles in procurement are "getting value for money for taxpayers and protecting people's data and British interests".
This stance marks a clear break from the current Labour government under Keir Starmer, which has been actively courting US artificial intelligence companies. According to the Financial Times, Burnham's advisers, including former technology minister Josh Simons, are working on a new AI strategy that prioritises British companies and workers.
The Manchester example
Burnham served as Mayor of Greater Manchester from 2017 until June, and during that time the regional authority awarded no contracts to Palantir. Greater Manchester Police also confirmed it has had no contract with Palantir in the last five years.
More striking is the situation on the NHS front. NHS leaders in Greater Manchester spent six years developing their own analytics infrastructure, rather than adopting the Federated Data Platform that NHS England built on Palantir's Foundry software. This is being presented by Burnham's allies as a national proof of concept: they argue that Palantir is not needed for effective NHS data management.
Political context
In his first major speech after returning to Westminster as an MP, Burnham said he wanted social value to carry more weight in government procurement decisions. According to sources close to him, behind this approach lies the risk that "unbridled tech boosterism" could alienate voters who are uneasy about how much of the state runs on American software.
Duncan McCann, Technology and Data Lead at the Good Law Project, said: "A defence company has inherently different values from an institution set up to treat patients. That is where the concern has been created." The Good Law Project is pursuing a legal challenge demanding greater transparency over the contract.
Next steps
While the NHS contract is the most visible, it is not the only issue likely to make headlines this year. After London Mayor Sadiq Khan blocked a £50 million Metropolitan Police contract, Palantir took the decision to the High Court, arguing it restricted freedom of expression. Although Khan's office later approved a smaller arrangement, the underlying tension persists.
Meanwhile, NHS staff have previously argued that Palantir's extensive support for the Israeli military inevitably contributes to Israel's attacks on health facilities in Gaza. For campaigners, Burnham's rise could be a turning point where criticism of Palantir's role in British public life may finally gain traction.
The break clause in the NHS contract comes into effect in March 2027, but a decision must be made by December. With Burnham expected to move into Downing Street this month, he will soon have to decide whether Palantir has a future in England's health service and, by extension, the rest of the public sector.
