Key facts
- Tom Watson, former Labour deputy leader and now senior vice-president at Palantir, warned against 'mob rule' in public contract awards.
- Watson urged ministers to let the rule of law, not 'mob rule', lead procurement practices.
- He stated that ministers could get themselves 'in a lot of trouble' if they follow 'mob rule'.
- Watson addressed concerns that Palantir's work in Israel has led to backlash against its UK contracts.
- Palantir has a £330m software deal with the NHS and is in a legal dispute with the Mayor of London over a £50m contract for its AI in police investigations.
Tom Watson, a former Labour deputy leader who recently joined Palantir as a senior vice-president, has cautioned his former party against allowing public pressure to dictate government contract awards. Speaking on the BBC's Political Thinking with Nick Robinson podcast, Watson urged ministers to uphold the rule of law in procurement, warning that succumbing to 'mob rule' could lead to significant trouble.
Watson's remarks come as Palantir faces scrutiny over its involvement in UK public services. The company is involved in a £330 million software deal with the NHS and is contesting a decision by London Mayor Sadiq Khan to block a £50 million contract for its AI technology in Metropolitan police investigations. Palantir has an existing annual turnover of £427 million in the UK and is seeking further public sector work.
Watson addressed concerns that Palantir's work in Israel has led to backlash against its UK contracts, emphasizing that Palantir is not an Israeli company. He also indicated a willingness to work with a Reform UK government on immigration crackdowns if the situation arose, though he noted Palantir does not typically operate in that sector.
Prime Minister Andy Burnham is reportedly under pressure from Labour MPs and unions to terminate Palantir's contracts. Chi Onwurah, chair of the science, innovation and technology committee, expressed concerns about over-reliance on a single US company, highlighting potential issues with data access under US legislation.