Andy Burnham is facing mounting criticism after reports that he is considering ending the NHS’s controversial £330 million contract with US technology company Palantir, despite claims that the system has helped increase operations and improve patient care.
Leading the criticism was Shadow Business Secretary Andrew Griffith, who questioned whether abandoning the technology would come at a cost to patients.
He said: “Most AI, including Palantir, is essentially an optimisation engine. It finds better solutions, faster.
“Does Andy Burnham think the NHS is so optimal it cannot be improved, or does he accept that kicking out Palantir will have a trade-off which is measured in more Brits dying?”
The comments come amid reports that Mr Burnham, who is expected to succeed Sir Keir Starmer as Prime Minister later this month, is reviewing the Government’s wider artificial intelligence strategy and is reluctant to continue relying on major US technology firms.
Palantir currently operates the NHS Federated Data Platform (FDP), a seven-year contract awarded in 2023 and valued at £330 million. The platform is designed to help NHS trusts manage waiting lists, improve the use of operating theatres and speed up patient discharges.
According to NHS figures, more than half of NHS trusts in England now use Palantir technology. Health service data suggests the system has contributed to around 110,000 additional operations since the contract began.
Documents reported last month also suggested that hospitals using the platform have achieved significant improvements in theatre utilisation, raising the prospect of substantially increased surgical capacity if the model were adopted more widely.
Despite those reported benefits, Palantir has become a target for some Labour MPs, trade unions and Left-wing campaign groups because of the company’s work with the Israeli military and US immigration authorities.
Questions have also been raised about the political views of Palantir’s senior leadership. Company founder Peter Thiel was an early supporter of Donald Trump, while chief executive Alex Karp has also expressed support for the former US President.
Mr Burnham has not announced any decision regarding existing or future contracts. However, allies point to his record as Mayor of Greater Manchester, where neither the Greater Manchester Combined Authority nor Greater Manchester Police awarded contracts to Palantir during his tenure.
The issue is said to have been raised by some Labour activists and voters during the recent Makerfield by-election campaign that propelled Mr Burnham back into Westminster and ultimately contributed to Sir Keir Starmer’s resignation.
Shadow Health Secretary Stuart Andrew warned against allowing political considerations to override healthcare outcomes.
He said: “If Andy Burnham tears up a programme that is improving patient care, he will have to explain why he chose politics over patients.
“The NHS should use the best technology available to save lives, cut waiting lists and help staff deliver better care. If we want the NHS to embrace the very best technology, we must be willing to work with the world’s leading technology companies.
“Driving them away for political reasons risks undermining confidence in partnering with the NHS. Patients should never pay the price for Labour’s political posturing. Lives are too important to be sacrificed for Andy Burnham’s political beliefs.”
Critics argue that abandoning a system already embedded across much of the NHS risks becoming a costly exercise in ideology, particularly at a time when waiting lists remain high and health services continue to face intense pressure.
Supporters of a review, however, argue that public sector contracts should place greater emphasis on social value and that the Government should be cautious about dependence on large overseas technology firms.
Mr Burnham has repeatedly signalled that he wants a different approach to economic policy, industrial strategy and technology procurement. In a recent speech he pledged to support domestic industry and ensure that economic growth benefits communities across the country.
Any decision on Palantir is likely to become an early test of that approach.
The current NHS contract contains a break clause next year. If ministers choose not to continue with the arrangement, notice would need to be given before the agreement automatically renews.
For now, no final decision has been announced. However, with reports suggesting the contract is under review, critics are already asking whether Labour is at risk of cutting off a technology platform credited with improving NHS performance in pursuit of political objectives.
