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Leadership Independently confirmed2 publishers 3 min read Published Updated

Tom Watson warns former Labour colleagues against 'mob rule' in procurement

Palantir's Tom Watson, a former Labour deputy leader, warned against 'mob rule' in procurement as MPs and unions press to drop a £330m NHS deal. Any exit ministers choose now carries legal risk as well as political cost.

The Board Room · Leadership desk

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Labour MPs and unions press Burnham to drop Palantir Who the dispute over Palantir's UK public contracts reaches, and how, as reported by The Guardian

Exposure map. Labour MPs and unions press PM Andy Burnham to drop Palantir, including a £330m NHS deal. Palantir is fighting Sadiq Khan in court over his block on a £50m Met police contract. Chi Onwurah objects to dependence on one US company. Palantir has £427m annual UK turnover.

Labour MPs and unions press Burnham to drop Palantir
WhoHowKindClaim
PM Andy BurnhamUnder pressure from Labour MPs and unions to drop Palantir from government contracts, including a £330m NHS software dealdecision1
London mayor Sadiq KhanPalantir is fighting him in court over his block on a £50m contract for its AI in Met police investigationsexposure5
Chi Onwurah, Labour MPCommittee chair says the key issue is dependence on one US company subject to US law on access to UK datacontradiction13
PalantirSeeking more UK public sector work on top of an annual UK turnover of £427mexposure10

What happened

  • Palantir's AI software for the Israeli military and the White House's ICE immigration crackdown has fuelled a backlash against its growing role in British public services.
  • Palantir already has annual UK turnover of £427m and is seeking to win more public sector work in Britain.
  • Palantir said Watson has taken a leave of absence from the House of Lords and given up his parliamentary pass while he works for the company in London.
  • Watson said Palantir would work with a Reform UK government on immigration crackdowns if the situation arose, though it does not currently work in that sector.

Why it matters

  • Who has to decide decision Ministers who want Palantir out have to pick a ground: a withdrawal driven by protest is the version Watson has already labelled 'mob rule', while limits on reliance on one supplier can be set before contracts are signed.
  • What doesn't add up contradiction Watson blames the opposition on Gaza campaigners, but Labour's own select committee chair objects to dependence on a US company under US data law, an objection his answer leaves standing.
  • What it costs cost Watson's readiness to serve a Reform government's immigration push ties Palantir's British pitch to the kind of ICE work behind the backlash, in front of the Labour MPs he is courting.

Next story · Leadership · 2d ago

Palantir settles its £50m Met contract suit after Mopac disclaims any values test

Confirmed3 publishers

Watson made a legal argument, and he made it to the people he used to sit beside. "One of the things I'd say to my former colleagues is: do you want to let the rule of law lead procurement practice, or do you want to let mob rule to lead procurement practices? Because you get yourself in a lot of trouble if you go down on the latter one," he told the BBC podcast Political Thinking with Nick Robinson [4]. He was a defence minister and minister for digital engagement in Gordon Brown's government [7]. He has advised Palantir part-time since 2024 [8].

The warning has a court case behind it. Palantir is fighting Sadiq Khan, the London mayor, who blocked a £50m deal for Metropolitan police investigators to use the company's AI [5]. Counting the £330m NHS software deal that Labour MPs and unions want Andy Burnham to abandon, £380m of named contract value is now in political dispute [1][14]. The reporting does not give either contract's term.

Watson's account of who opposes the company is narrow. "I think we are very targeted by the people that are targeting Israeli companies. We're not an Israeli company, but because of our work in Israel, we found ourselves in the middle of the row of the Gaza protests," he said [6]. The sceptic in his old party starts from somewhere else. "Tom is not the first politician to be blinded by tech hype. The key issue is we can't be so dependent on one company. It's a US company, subject to US legislation regarding access to our data," Chi Onwurah, the Labour MP who chairs the science, innovation and technology committee, told BBC Radio 4's Today programme [13].

Her objection is the harder one for Palantir to answer. It would stand even if the company had never worked for the Israeli military or for ICE, so an account built on Gaza campaigners does not meet it [3]. It is an objection about concentration and jurisdiction. In my view a minister who wants to reduce reliance on Palantir is on firmer ground there. Limits on dependence and conditions on data access can be written into the next contract before it is signed, and they are harder to call mob rule than a cancellation that follows a protest.

The decision has a short horizon and a long one. This quarter it is the NHS deal, and the record does not yet show whether Burnham will move on it. Over the decade it is Onwurah's question of how much state data work sits with one supplier subject to another country's law [13]. A cancellation made now under protest pressure would settle the first question and leave the second open, with a court fight likely if the Met case is a guide [5].

I think the hire shows Palantir treats its standing with the governing party as a commercial risk in its own right. The company said Watson's job would be, in part, to "deepen the social and economic value its work creates through better British public services, jobs and skills" [12].

What to watch

  • Whether Burnham's government keeps, reviews or cancels the £330m NHS software deal, and what ground it gives for the decision.
  • The outcome of Palantir's court challenge to Sadiq Khan's block on the £50m Metropolitan police contract.
  • Whether the science, innovation and technology committee turns its concerns about dependence on Palantir into formal procurement recommendations.

Clarity's read

What the record supports and how the coverage leans. The claims behind it follow.

Reality

Evidence62
Adoption58
Hype gap+10
Incentives78
Confidence66
Why these scores

Claim ledger

Ranked by verification strength, evidence, and original report placement.

  1. [1]

    Prime minister Andy Burnham is under significant pressure from Labour MPs and unions to ditch Palantir from government contracts, including a £330m software deal with the NHS.

    Reported Supported Source: The GuardianView cited source
  2. [2]

    Tom Watson, the former Labour deputy leader who recently joined Palantir as a senior vice-president, warned against "mob rule" when it comes to awarding public contracts.

    Reported Supported Source: The GuardianView cited source
  3. [3]

    Palantir, co-founded by Peter Thiel, has provided AI-powered software to the Israeli military and the White House's ICE immigration crackdown, leading to a public and political backlash against its deepening involvement in British public services.

    Reported Supported Source: The GuardianView cited source
  4. [4]

    One of the things I'd say to my former colleagues is: do you want to let the rule of law lead procurement practice, or do you want to let mob rule to lead procurement practices? Because you get yourself in a lot of trouble if you go down on the latter one.

    Reported Supported Source: Tom Watson, speaking to the BBC podcast Political Thinking with Nick Robinson, as reported by The GuardianView cited source
  5. [5]

    Palantir is fighting London mayor Sadiq Khan in court over his block on a £50m contract to use its AI in Metropolitan police investigations.

    Reported Supported Source: The GuardianView cited source
  6. [6]

    I think we are very targeted by the people that are targeting Israeli companies. We're not an Israeli company, but because of our work in Israel, we found ourselves in the middle of the row of the Gaza protests.

    Reported Supported Source: Tom Watson, as reported by The GuardianView cited source
  7. [7]

    Watson was a defence minister and a minister for digital engagement in Gordon Brown's government.

    Reported Supported Source: The GuardianView cited source
  8. [8]

    Since 2024, Watson has been a part-time adviser to Palantir.

    Reported Supported Source: The GuardianView cited source
  9. [9]

    Palantir said Watson had taken a leave of absence from the House of Lords and had relinquished his parliamentary pass while he works for the company in London.

    Reported Supported Source: Palantir, as reported by The GuardianView cited source
  10. [10]

    Palantir is seeking to win more public sector work in the UK, where it already has an annual turnover of £427m.

    Reported Supported Source: The GuardianView cited source
  11. [11]

    Watson said he would work with a Reform UK government on immigration crackdowns if the situation arose: "We don't actually work in that sector, but yes, of course we would."

    Reported Supported Source: Tom Watson, as reported by The GuardianView cited source
  12. [12]

    Palantir said Watson's job would be, in part, to "deepen the social and economic value its work creates through better British public services, jobs and skills".

    Reported Supported Source: Palantir, as reported by The GuardianView cited source
  13. [13]

    Tom is not the first politician to be blinded by tech hype. The key issue is we can't be so dependent on one company. It's a US company, subject to US legislation regarding access to our data.

    Reported Supported Source: Chi Onwurah, Labour MP and chair of the science, innovation and technology committee, speaking to BBC Radio 4's Today programme, as reported by The GuardianView cited source
  14. [14]

    The NHS software deal and the blocked Met police contract together account for £380m of named Palantir contract value in political dispute.

    Derived Supported

Sources

2 independent publishers whose own reporting we read for this story.

  1. cityam.com

    1 article · October 9, 2026

    Palantir’s Tom Watson warns Labour against ‘mob rule’ on procurement
  2. theguardian.com

    1 article · October 9, 2026

    Palantir’s Tom Watson says ‘mob rule’ must not dictate awarding of government contracts

Topics and entities

Topics

  • Data Sovereignty
  • UK public procurement
  • Government AI contracts
  • Political revolving door