Full Breakdown
London Mayor Blocks £50 million Palantir Contract for Metropolitan Police
5/22/2026, 8:31:10 PM
Core Event: Blocked Deal and Procurement Breach
On 21 May 2026, Mayor Sadiq Khan’s office refused approval for a proposed two-year, up-to-£50 million contract between the Metropolitan Police Service (Met) and US data-analytics firm Palantir Technologies. The Mayor’s Office for Policing and Crime (Mopac) cited a “clear and serious breach” of procurement rules: the Met engaged only with Palantir, failed to obtain prior approval for its procurement strategy, and did not demonstrate value for money or guard against technological lock-in.
Background & Context: Palantir’s Role in UK Public Services
Palantir already holds contracts worth close to £1 billion across the UK, including a £240 million Ministry of Defence deal, a £330 million NHS England data platform, and services for the Financial Conduct Authority and several regional police forces. Its technology is used by 72 NHS trusts and has been deployed in a pilot contract with the Met worth just under £500 000, below the threshold that triggers mayoral scrutiny.
Key Figures & Groups
- Sadiq Khan – Mayor of London, final approver of contracts over £500 000.
- Kaya Comer-Schwartz – Deputy Mayor for Policing and Crime, author of the breach notice to Met Commissioner Mark Rowley.
- Matt Jukes – Met Deputy Commissioner, acknowledged the divisive nature of Palantir.
- Benali Hamdache – Green Party London Assembly member, raised procurement concerns.
- Palestine Solidarity Campaign (PSC) – Campaign group urging cancellation of all Palantir contracts.
- Metropolitan Police Federation (MPF) – Union warning about AI monitoring of officers.
- Louis Mosley – Palantir UK chief executive, defended the firm’s role.
- Rosena Allin-Khan – Labour MP supporting the block.
- Peter Kyle – Business Secretary, highlighted the need for British AI alternatives.
- Shabana Mahmood – Home Secretary, called for rapid AI adoption in policing.
Timeline
- Feb 2026 – Met awarded a pilot contract of ~£500 000 for Palantir’s operating system.
- May 2026 – Met entered advanced talks for a £50 million AI contract.
- 21 May 2026 – Khan’s office blocked the contract; Comer-Schwartz sent a breach notice to Commissioner Rowley.
- May 2026 (later) – Palantir’s UK chief responded, accusing Khan of politicising procurement.
Data & Statistics
- Proposed contract value: up to £50 million over two years.
- Pilot contract: just under £500 000 (below the £500 000 approval threshold).
- Estimated annual cost range: £15 million-£25 million.
- Palantir’s UK public-sector portfolio: ?£600 million-£1 billion.
- NHS involvement: technology used by 72 NHS trusts; £330 million NHS England data platform.
- Government AI policing investment: £115 million for a national AI platform.
Official Statements & Responses
Mayor Khan said the Met “did not present their procurement strategy to the deputy mayor for policing and crime for approval as required under Mopac scheme of delegation.” Comer-Schwartz called the Met’s actions a “clear and serious breach” that created “legal and reputation risks.” The Met described the intervention as “disappointing,” warning it could hinder modernization and force staffing cuts. Palantir’s Mosley argued the decision “puts public safety at risk” and accused the mayor of “politicising procurement.” Business Secretary Kyle emphasized the need for domestic AI capability, while Home Secretary Mahmood reiterated the government’s push for AI adoption in policing.
Criticism & Opposition
The PSC condemned Palantir’s involvement with the Israeli military and called for cancellation of all contracts, including the existing £500 000 Met pilot. Hamdache highlighted loopholes that could permit future single-supplier deals. MP Stella Creasy labelled Mosley’s remarks “shameful.” MPs Rosena Allin-Khan and Clive Lewis praised the block as aligning with London’s values. Science and Technology Committee chair Chi Onwurah warned against vendor lock-in and over-reliance on overseas suppliers.
Conflicting Reports & Gaps
Sources differ on the exact cost of the pilot contract, with one citing “just short of £10 000” and another “just short of £490 000.” Palantir’s claim of a discount on the pilot is unverified. The extent to which the Met tested alternative suppliers remains unclear.
Verbatim Quotes
- “Reputationally, we know we are using a divisive supplier in this,” — Matt Jukes, Metropolitan Police Deputy Commissioner
- “Palantir is a US software company whose tools are currently used by the Israeli military as they commit genocide against Palestinians in occupied Gaza.” — Kristyan Benedict, Amnesty International UK campaigns manager
- “I have not been provided with any acceptable explanation for this failure, which I regard as a clear and serious breach of the applicable procedural requirements.” — Kaya Comer-Schwartz, Deputy Mayor for Policing and Crime
- “What Londoners value is not being mugged, not being raped by a serving police officer.” — Louis Mosley, Palantir UK chief executive
- “Palantir does not reflect the values of our city,” — Rosena Allin-Khan, Labour MP
- “We need to have more British AI companies that can do those kinds of things, which is why I’ve taken equity stakes in British AI firms and British tech firms, so that we can scale them up much, much faster.” — Peter Kyle, Business Secretary
What’s Next
Mopac signalled willingness to work with the Met on a revised procurement that invites competition. The government’s £115 million AI policing programme proceeds, and Home Secretary Mahmood’s call for rapid AI adoption remains in force. Ongoing public and parliamentary pressure may prompt reviews of existing Palantir contracts across health, defence and financial regulation.
