UK to extend Palantir's FDP contract while laying plans for UK alternative

The UK government is preparing to extend its controversial £330 million Federated Data Platform (FDP) contract with US technology firm Palantir, while formulating plans to eventually replace the company with a local provider.

Despite pressure from Labour MPs and campaigners to invoke a break clause in February, an internal review concluded that replacing the company within four months would cause severe disruption. Ministers instead intend to approve a two-year contract extension alongside a fresh procurement process focusing on sovereign technology, to (potentially) remove Palantir at the end of the term.

The approach reflects Prime Minister Andy Burnham's Buy British initiative and new cabinet principles prioritising national control over artificial intelligence (AI) and digital supply chains. Ministers are increasingly concerned that public distrust of Palantir could jeopardise patient data sharing and research initiatives.

Health Secretary Yvette Cooper stated the review is proceeding strictly by the book, stressing ambitions to develop sovereign AI capabilities. Health officials have explored British alternatives to manage the FDP; however, Palantir proponents warn that switching to untested rivals poses operational risks.

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