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My Lords, government departments operate within a robust procurement and assurance framework, ensuring that contracts are awarded only where requirements are met and no exclusion grounds apply. Palantir’s software is used globally across public and private sectors. Within the UK Government, its use is governed through established legal and assurance frameworks. In defence, Palantir supports data integration and AI-enabled analysis, providing timely insights that improve operational planning, decision-making and effectiveness.
My Lords, government departments operate within a robust procurement and assurance framework, ensuring that contracts are awarded only where requirements are met and no exclusion grounds apply. Palantir’s software is used globally across public and private sectors. Within the UK Government, its use is governed through established legal and assurance frameworks. In defence, Palantir supports data integration and AI-enabled analysis, providing timely insights that improve operational planning, decision-making and effectiveness.
To ask His Majesty’s Government what assessment they have made of the human rights and reputational risks presented by their public service contracts with Palantir.
My noble friend is quite right to challenge the Government on these incredibly important issues around human rights and how the Government establish their contracts. To be clear about the UK Government, we are talking about a relationship and contracts that are negotiated with Palantir UK. The contracts that we operate with Palantir UK have strict protocols in place. We retain full ownership and sovereign authority over all defence data, including how it is stored, how it is accessed and how it is used. Contracts with suppliers include legally enforceable provisions to ensure that data sovereignty is maintained. I understand the points that my noble friend raises, but with respect to our contracts with Palantir UK, we ensure that the correct provisions are in place.
My noble friend is quite right to challenge the Government on these incredibly important issues around human rights and how the Government establish their contracts. To be clear about the UK Government, we are talking about a relationship and contracts that are negotiated with Palantir UK. The contracts that we operate with Palantir UK have strict protocols in place. We retain full ownership and sovereign authority over all defence data, including how it is stored, how it is accessed and how it is used. Contracts with suppliers include legally enforceable provisions to ensure that data sovereignty is maintained. I understand the points that my noble friend raises, but with respect to our contracts with Palantir UK, we ensure that the correct provisions are in place.
My Lords, I am perennially grateful to my noble friend. If we are to avoid a future Fujitsu-style scandal of even greater proportions, how can our public money, personal data, national security and reputation be safe in the hands of a company credibly implicated in gross human rights violations, both in Gaza and ICE operations in the United States?
My noble friend makes a really important point. Many people across this Chamber will know that the responsibility of government requires difficult decisions to be made. As my noble friend Lady Chakrabarti has rightly raised, there are sometimes difficult decisions and difficult dilemmas to be resolved. Alongside that—my noble friend asked about defence—we have a responsibility to ensure that with the AI capability and the data management capability, we can take forward our strategic defence review and can give our Armed Forces and those who work with them the best possible tools to ensure that we deliver the objectives of His Majesty’s Government. That is what we seek to do, while recognising the moral responsibilities we also have.
My noble friend makes a really important point. Many people across this Chamber will know that the responsibility of government requires difficult decisions to be made. As my noble friend Lady Chakrabarti has rightly raised, there are sometimes difficult decisions and difficult dilemmas to be resolved. Alongside that—my noble friend asked about defence—we have a responsibility to ensure that with the AI capability and the data management capability, we can take forward our strategic defence review and can give our Armed Forces and those who work with them the best possible tools to ensure that we deliver the objectives of His Majesty’s Government. That is what we seek to do, while recognising the moral responsibilities we also have.
My Lords, given the Government’s decision to partner with Palantir as part of their defence modernisation programme and the role that advanced data and AI capabilities will play in future warfare, does the Minister agree that such technologies are critical to delivering the strategic defence review, strengthening the UK’s ability to respond to hostile state threats and supporting the Government’s wider objectives for growth, innovation and defence-industrial capacity?
My understanding is that the mayor and the commissioner have now reached an arrangement with respect to the activity of Palantir within the Metropolitan Police, where there will be a 12-month period to establish a proof of concept as to whether Palantir can move forward. The mayor and the Metropolitan Police commissioner have agreed that because, as the noble Lord says, the commissioner believes it will help fight crime. It is a matter for them to resolve that, but it seems they have found a way in which both are happy to try to take it forward.
I do not want to underestimate the moral questions that Governments sometimes have to answer. The noble Lord knows the issue of education particularly well, but let us look at the issue with respect to health: 41 ICBs and 171 trusts have signed up to use the NHS federated data platform; more than 100,000 extra patients have been seen; hundreds of thousands of patients have been safely removed from the waiting list; and nearly 94,000 patients have been supported on their cancer journey. That is the sort of dilemma that Governments need to resolve to try to find the best way forward.
My understanding is that the mayor and the commissioner have now reached an arrangement with respect to the activity of Palantir within the Metropolitan Police, where there will be a 12-month period to establish a proof of concept as to whether Palantir can move forward. The mayor and the Metropolitan Police commissioner have agreed that because, as the noble Lord says, the commissioner believes it will help fight crime. It is a matter for them to resolve that, but it seems they have found a way in which both are happy to try to take it forward.
I do not want to underestimate the moral questions that Governments sometimes have to answer. The noble Lord knows the issue of education particularly well, but let us look at the issue with respect to health: 41 ICBs and 171 trusts have signed up to use the NHS federated data platform; more than 100,000 extra patients have been seen; hundreds of thousands of patients have been safely removed from the waiting list; and nearly 94,000 patients have been supported on their cancer journey. That is the sort of dilemma that Governments need to resolve to try to find the best way forward.
My Lords, I am grateful, as ever, to the Minister for his lucid and authoritative response. When I was a Minister, I saw how Palantir’s technology helped to save lives in the NHS. I saw how Palantir helped to ensure that those fleeing persecution from the Ukraine war could have a safe home in this country. I also appreciate that Palantir is playing a role in defending democracy, not just in the Middle East but in Ukraine. Is it therefore not a matter of regret to the Minister, as it is to me, that the Mayor of London has specifically ruled out Palantir helping to fight crime on the streets of London when the commissioner of the Metropolitan Police has made clear that, as a result of the Mayor of London’s decision, our citizens will be less safe?
The noble Baroness is quite wise to raise that point; it is a question I asked too. Officials told me that it was the only company—the only available platform—that could provide what the MoD needed and give us the operational capability that was required. Under the single tender regime—I cannot remember the exact title—where there is no other option available, it is okay and legal for the Government to operate in that way. That is why the Government did that. Of course we are looking at whether other people can provide the sort of expertise that the noble Baroness refers to, but there was no point going out to procurement when the only provider was Palantir.
The noble Baroness is quite wise to raise that point; it is a question I asked too. Officials told me that it was the only company—the only available platform—that could provide what the MoD needed and give us the operational capability that was required. Under the single tender regime—I cannot remember the exact title—where there is no other option available, it is okay and legal for the Government to operate in that way. That is why the Government did that. Of course we are looking at whether other people can provide the sort of expertise that the noble Baroness refers to, but there was no point going out to procurement when the only provider was Palantir.
My Lords, on these Benches we understand the importance of the Armed Forces modernising, including with AI. My understanding is that Palantir received a £240 million contract without the MoD going out to tender. While there are clearly national security exemptions for genuinely exceptional cases, is the Minister concerned that this could just move towards being a way of avoiding competition rather than helping national security? Will the next contract go out to procurement?
The noble Baroness will see in due course some of the ways in which we are taking forward AI, but she is quite right to ask about this. AI is crucial to the future provision for our Armed Forces and to enabling them to have the capability and capacity they need for the conflicts of the future. Palantir is one example of the way in which we seek to take that forward. Other options will be brought forward as part of the defence investment plan. Clearly, AI is the future of much of the technological co-operation that will be needed both within government and with our allies.
The noble Baroness will see in due course some of the ways in which we are taking forward AI, but she is quite right to ask about this. AI is crucial to the future provision for our Armed Forces and to enabling them to have the capability and capacity they need for the conflicts of the future. Palantir is one example of the way in which we seek to take that forward. Other options will be brought forward as part of the defence investment plan. Clearly, AI is the future of much of the technological co-operation that will be needed both within government and with our allies.
My Lords, by common assent, Palantir’s technology has rapidly and dramatically improved the Ministry of Defence’s logistics and operational planning systems without either human rights or reputational risks. Given that the current challenge confronting the MoD is recognised in the SDR, which recommended achieving a 10% efficiency saving by greater use of AI systems, what progress has been made on that objective to date?
My noble friend makes a really important point. Palantir provides us with the capability that we require at the moment, but he will be reassured by the fact that, alongside granting this contract to Palantir for the next three years from this April, we are seeking to look at options with small and medium-sized and other companies that could provide the same capability, so that we have a competitive process in future. That also answers the noble Baroness’s point. I suggest that will keep Palantir on its toes in the marketplace as well.
My noble friend makes a really important point. Palantir provides us with the capability that we require at the moment, but he will be reassured by the fact that, alongside granting this contract to Palantir for the next three years from this April, we are seeking to look at options with small and medium-sized and other companies that could provide the same capability, so that we have a competitive process in future. That also answers the noble Baroness’s point. I suggest that will keep Palantir on its toes in the marketplace as well.
My Lords, the Minister is quite right to resist attempts, which happen quite regularly, to demonise individual companies rather than looking at the underlying reality. He is also right to look at results. In this very fast-changing world of information technology, the company leading this year may well not be leading next year or even in six months. I recognise that Palantir has a major presence in the UK, which is welcome, but other companies are available. I caution against the department and the Government becoming overdependent on individual companies that almost become too big to fail, as we have seen in other sectors.
I understand the point that the noble Baroness is making, but the point I made at the beginning is that these contracts are with Palantir UK. Anyone who has been a Minister knows that contracts signed on behalf of the Government have to have a fit and proper process. We will not take on people to run things for us who have criminal records of a particular sort, do not pass the monetary test or have other considerations around them that mean we see them as a security threat—of course we would not. The people who have gone through this process and been given the contracts have passed the tests set for them as part of the risk assurance process.
The noble Baroness is perfectly entitled to her opinion, but taking the decision not to grant Palantir the contract would have consequences as well—many patients now being seen would not be seen, many crimes being solved would not be solved and the operational abilities and capabilities of our Armed Forces would be undermined because no one else can provide that capability. That is the side that I am on. The noble Baroness can take the side that she is on.
I understand the point that the noble Baroness is making, but the point I made at the beginning is that these contracts are with Palantir UK. Anyone who has been a Minister knows that contracts signed on behalf of the Government have to have a fit and proper process. We will not take on people to run things for us who have criminal records of a particular sort, do not pass the monetary test or have other considerations around them that mean we see them as a security threat—of course we would not. The people who have gone through this process and been given the contracts have passed the tests set for them as part of the risk assurance process.
The noble Baroness is perfectly entitled to her opinion, but taking the decision not to grant Palantir the contract would have consequences as well—many patients now being seen would not be seen, many crimes being solved would not be solved and the operational abilities and capabilities of our Armed Forces would be undermined because no one else can provide that capability. That is the side that I am on. The noble Baroness can take the side that she is on.
My Lords, have His Majesty’s Government considered applying a fit and proper person test to owners and managers for public sector IT contracts, particularly those involving
Britons’ private data, with particular attention to their respect for human rights and the rule of law? If they do not have that, the contracts will not be worth the paper they are written on.
To ask His Majesty’s Government what assessment they have made of the human rights and reputational risks presented by their public service contracts with Palantir.
To ask His Majesty’s Government what assessment they have made of the human rights and reputational risks presented by their public service contracts with Palantir.
My Lords, government departments operate within a robust procurement and assurance framework, ensuring that contracts are awarded only where requirements are met and no exclusion grounds apply. Palantir’s software is used globally across public and private sectors. Within the UK Government, its use is governed through established legal and assurance frameworks. In defence, Palantir supports data integration and AI-enabled analysis, providing timely insights that improve operational planning, decision-making and effectiveness.
To ask His Majesty's Government what assurances they have received from Palantir about the government of the USA's designation of Anthropic as a supply chain risk.
To ask His Majesty's Government what assurances they have received from Palantir about the government of the USA's designation of Anthropic as a supply chain risk.
The Ministry of Defence (MOD) requires all suppliers, including Palantir, to meet UK Government security and supply chain assurance standards. Palantir remains subject to ongoing MOD commercial and security oversight, and the MOD is satisfied that appropriate assurances are in place.
To ask His Majesty's Government, further to the Written Answer by Lord Coaker on 27 January (HL13563), when the contract for the Defence Marine Services Next Generation In-Port Services was signed; and in doing so what consideration was given to social value in line with the provisions of the Procurement Act...
To ask His Majesty's Government, further to the Written Answer by Lord Coaker on 27 January (HL13563), when the contract for the Defence Marine Services Next Generation In-Port Services was signed; and in doing so what consideration was given to social value in line with the provisions of the Procurement Act...
The contract for Defence Marine Services Next Generation In-Port Services was signed on 25 April 2025. This procurement had commenced in 2022 under the Defence and Security Public Contracts Regulations 2011, rather than the Procurement Act 2023 which came into force in February 2025. In compliance with the regulations in force at the time, the tender evaluation process included assessment of social value responses on education, training and environmental benefits.
To ask His Majesty's Government what the cost was of developing in-house army training as an alternative to the contract that was secured by Raytheon; and what assessment they have made of the security and resilience considerations of outsourcing army training to a company with US ownership.
To ask His Majesty's Government what the cost was of developing in-house army training as an alternative to the contract that was secured by Raytheon; and what assessment they have made of the security and resilience considerations of outsourcing army training to a company with US ownership.
No final decision has yet been made to award the Army Collective Training Service contract to become the Army’s Strategic Training Partner to Raytheon Systems UK. This decision will be made in due course following consideration of the programme’s Full Business Case. As The Full Business Case has not yet been finalised it would be inappropriate to release cost information at this stage.
The Army Collective Training Service contract is not an outsourcing of Army training. Many contractors already support Army training, including Raytheon Systems UK. If awarded, the Army Collective Training Service contract will consolidate many of these existing contracts. The Army, in partnership with the Strategic Training Partner, will transform the support and delivery of collective training while maintaining responsibility for delivery. All tenderers underwent security assessments during prequalification and as part of the tender evaluation, in line with Defence and Security Public Contract Regulations 2011.
To ask His Majesty's Government when they will award contracts under Programme EUSTON.
To ask His Majesty's Government when they will award contracts under Programme EUSTON.
With design work already underway, the Department intends to place a contract for the manufacture of the floating docks following production of the technical specification and upon completion of a procurement process.
While not formally under the scope of the National Shipbuilding Strategy, the analogous shipbuilding sector is well placed to participate in an upcoming procurement for the floating docks. As such, the National Shipbuilding Office has been consulted as part of the next investment decision point. Until the outcome of that next investment decision point is known, it is too early to provide information on job creation.
To ask His Majesty's Government what assessment they have made of the impact of the decision to award the Defence Marine Services Next Generation Contracts to Serco on UK shipbuilding jobs.
To ask His Majesty's Government what assessment they have made of the impact of the decision to award the Defence Marine Services Next Generation Contracts to Serco on UK shipbuilding jobs.
The Ministry of Defence (MOD) recognises the importance of supporting UK shipbuilding and undertook market engagement to encourage bids from UK shipyards for the Defence Marine Services Next Generation (DMS-NG) contracts. Despite these efforts, only one compliant bid was received, and Serco, as the prime contractor, was free to select its subcontractors.
The Government remains committed to supporting UK shipbuilding, and recent reforms to public procurement, including the Procurement Act 2023, which came into force in February 2025, provide greater flexibility to prioritise British companies in strategically important sectors. The MOD continues to work with the National Shipbuilding Office to maximise opportunities for UK suppliers in future procurements.
The operational necessity of the DMS-NG contracts and the need to maintain critical maritime capabilities were key considerations in the procurement process, as was programme affordability at the time. However, some £200 million will still be spent through DMS-NG at British boatyards for the maintenance of the new vessels, which will bring benefits to the UK ship repair sector.
To ask His Majesty's Government what discussions they had with the National Shipbuilding Office about the requirements of the vessels needed as part of the Defence Marine Services Next Generation Contracts.
To ask His Majesty's Government what discussions they had with the National Shipbuilding Office about the requirements of the vessels needed as part of the Defence Marine Services Next Generation Contracts.
The Defence Marine Services Next Generation (DMS-NG) programme did engage with the National Shipbuilding Office (NSO) on the requirements of the vessels. The NSO’s recommendations were considered by the Ministry of Defence alongside other criteria. The Government is committed to supporting British industry in the future and programme teams will continue to engage the NSO.
To ask His Majesty's Government what assessment they have made of the ability of Damen to deliver as a subcontractor under the Defence Marine Services Next Generation Contracts following Damen's receipt of an emergency loan from the Dutch Government.
To ask His Majesty's Government what assessment they have made of the ability of Damen to deliver as a subcontractor under the Defence Marine Services Next Generation Contracts following Damen's receipt of an emergency loan from the Dutch Government.
The Defence Marine Services Next Generation procurement was carried out in accordance with the Defence and Security Public Contracts Regulations 2011 (DSPCR), under which Serco, as prime contractor, was free to select its own supply chain. The Procurement Act, which came into force in February 2025, offers greater flexibility to prioritise British companies in strategically important areas.
The Ministry Of Defence (MOD) is aware of ongoing legal proceedings against Damen in the Netherlands, it continues to monitor proceedings and will take appropriate action should a conviction occur.
The MOD is aware of the loan provided by the Dutch Government to Damen. Serco, as prime contractor, has undertaken its own analysis of Damen’s financial position and has advised that there is no immediate risk to delivery of the Vessel Replacement Programme. Both the MOD and Serco will continue to monitor the situation as part of routine contract management.
To ask His Majesty's Government what investigation they have undertaken into the award to Damen under the Defence Marine Services Next Generation Contracts following the prosecution of Damen in the Netherlands for bribery.
To ask His Majesty's Government what investigation they have undertaken into the award to Damen under the Defence Marine Services Next Generation Contracts following the prosecution of Damen in the Netherlands for bribery.
The Defence Marine Services Next Generation procurement was carried out in accordance with the Defence and Security Public Contracts Regulations 2011 (DSPCR), under which Serco, as prime contractor, was free to select its own supply chain. The Procurement Act, which came into force in February 2025, offers greater flexibility to prioritise British companies in strategically important areas.
The Ministry Of Defence (MOD) is aware of ongoing legal proceedings against Damen in the Netherlands, it continues to monitor proceedings and will take appropriate action should a conviction occur.
The MOD is aware of the loan provided by the Dutch Government to Damen. Serco, as prime contractor, has undertaken its own analysis of Damen’s financial position and has advised that there is no immediate risk to delivery of the Vessel Replacement Programme. Both the MOD and Serco will continue to monitor the situation as part of routine contract management.
To ask His Majesty's Government how many contracts the Ministry of Defence has with Damen either directly or through contracts with third parties, and what is the value of those contracts.
To ask His Majesty's Government how many contracts the Ministry of Defence has with Damen either directly or through contracts with third parties, and what is the value of those contracts.
The Ministry of Defence has no direct contracts with Damen. We have identified one contract through a third party, Serco, for the Defence Marine Services Next Generation In Port Services Contract which encompasses the Vessel Replacement Programme. Damen Shipyards is a subcontractor for this programme with the value of this subcontract representing approximately £200 million, 22% of the total In-Port Services contract value. The decision to award the contract to Damen Shipyards Group was made by Serco.
To ask His Majesty's Government what discussions they have had with Serco about the delivery of the Defence Marine Services Next Generation Contracts and the ability of Damen to deliver as a subcontractor.
To ask His Majesty's Government what discussions they have had with Serco about the delivery of the Defence Marine Services Next Generation Contracts and the ability of Damen to deliver as a subcontractor.
The Ministry of Defence holds regular and detailed discussions with Serco, the prime contractor for the Defence Marine Services Next Generation In-Port Services contract, regarding the delivery of the contract.
To ask His Majesty's Government what discussions they had with Serco prior to awarding the Defence Marine Services Next Generation Contracts about the ability of UK shipyards to build the vessels required under the contract.
To ask His Majesty's Government what discussions they had with Serco prior to awarding the Defence Marine Services Next Generation Contracts about the ability of UK shipyards to build the vessels required under the contract.
Prior to awarding the Defence Marine Services Next Generation In-Port Services contract in April 2025, the Ministry of Defence (MOD) conducted several rounds of market engagement activities to encourage participation from across the UK shipbuilding sector, including Small and Medium-sized Enterprises. The intention was to maximise domestic involvement.
Despite these efforts, only a single compliant bid was received, necessitating a single-source approach to maintain programme momentum and ensure continuity of essential services. Serco was free to select its subcontractors, and the MOD was not permitted to require Serco to discriminate on grounds of nationality. The selection of Damen was based on Serco’s assessment of programme requirements and was consistent with all applicable procurement regulations. Damen Shipyards Group was selected by Serco.
The Procurement Act, which came into force in February 2025, offers greater flexibility to prioritise British companies in strategically important sectors such as shipbuilding.