Tom Watson, who recently became a senior vice-president at Palantir Technologies, has cautioned against what he characterizes as “mob rule” influencing the awarding of public sector contracts. Speaking on a BBC podcast, Watson argued that procurement decisions should be guided by the rule of law rather than public pressure, stating that ministers risk serious consequences by departing from this principle.
Watson’s comments come amid substantial political pressure on Prime Minister Andy Burnham to end the government’s relationship with Palantir. Labour MPs and unions have raised objections to the company’s involvement in public services, particularly regarding a £330m software contract with the NHS. Additionally, Palantir is engaged in litigation with London Mayor Sadiq Khan over his decision to block a £50m AI contract for Metropolitan police investigations.
Palantir, co-founded by Trump-supporting billionaire Peter Thiel, has attracted controversy due to its work with the Israeli military and involvement in US immigration enforcement operations. Watson acknowledged that the company has become caught in broader debates about Israeli-related issues, though he emphasized that Palantir is not an Israeli company. He stated the firm would consider working with any government on immigration policy if the opportunity arose.
Watson, a former defence minister under Gordon Brown, stepped down from parliament in 2019 and has worked as an adviser to various industries. He took a leave of absence from the House of Lords upon joining Palantir. Labour MP Chi Onwurah, chair of the science, innovation and technology committee, expressed concern about over-reliance on a single US company, citing issues related to data access and US legislation.
Palantir currently generates approximately £427m in annual turnover in the UK market and continues to seek expanded public sector contracts.
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