From Manchester to Downing Street: What Burnham could mean for Palantir

London, United Kingdom – Should Andy Burnham enter Downing Street as early as July ۱۷, if he is confirmed unopposed as Labour leader, one of his most consequential early decisions will have nothing to do with defence spending, immigration, or the economy.

It will concern a seven-year ۳۳۰-million-pound ($۴۴۰m) contract between NHS England and Palantir Technologies, a leading defence and intelligence software firm in the United States that received no contracts from Burnham’s Greater Manchester administration during his nine years as mayor.

The ramifications of such a decision could extend well beyond the NHS.

Media reports surfaced last week that Burnham is minded to hold that line with Palantir across all of the UK government when he arrives in Downing Street.

When approached by Al Jazeera, an Andy Burnham spokesperson said: “We’re not going to comment on individual government procurement contracts or companies and there are legal processes that must be followed.

“However, in general, Andy’s guiding principles on procurement are that we need to be getting value for money for the taxpayer and that we need to be safeguarding people’s data and British interests.”

For a company that has spent six years embedding itself across several public sector entities – the NHS, the Ministry of Defence, the Home Office, the Financial Conduct Authority – that posture is a real shift from the outgoing Labour administration led by Keir Starmer.

Starmer’s government actively courted US-based AI companies championed by the former UK ambassador to Washington, Peter Mandelson.

According to the Financial Times, which cited people briefed on the discussions, Burnham’s advisers, including former tech minister Josh Simons, are working with researchers Antonio Weiss and Martha Dacombe on a new AI strategy prioritising British companies and workers.

The story of how we got here runs through Manchester.

The Manchester precedent

Burnham served as Mayor of Greater Manchester from ۲۰۱۷ until June, when he returned to Westminster via the Makerfield by-election.

Under his leadership, the Greater Manchester Combined Authority issued no contracts to Palantir. Greater Manchester Police has separately confirmed it did not have a Palantir contract in the past five years.

The more instructive precedent, though, is in the NHS – an institution Burnham has no direct mayoral authority over, but shaped politically through Greater Manchester’s landmark health devolution settlement.

Rather than adopt the NHS England-mandated Federated Data Platform, built on Palantir’s Foundry software, Greater Manchester’s NHS leaders spent six years building their own analytics infrastructure instead. That became a proof of concept, which allies now cite nationally: effective NHS data management, they argue, does not require Palantir.

In May, Al Jazeera spoke to the Good Law Project about its concerns that Palantir was a “potential security risk”.

Some campaigners have interpreted recent political signalling from Burnham’s camp as supportive of their position, although a Good Law Project spokesperson said it has had no direct contact with him or his team.

The political context

In his first major speech since returning to Westminster as an MP, Burnham said he wanted social value to weigh more heavily in government procurement decisions. The reasoning, according to those close to him, is as much political as ethical.

Reports have described concern within his camp that “unfettered tech boosterism” risks alienating voters already uneasy about how much of the state now runs on American software.

Underneath that concern sits a more specific worry: that a company built to serve defence and intelligence clients does not necessarily share the values of an institution built to treat patients.

“A defence company has inherently different values than a healthcare organisation like the NHS,” said Duncan McCann, Technology and Data Lead at the Good Law Project, which has led legal action seeking greater transparency over the contract. “That’s where I think this concern was created.”

Palantir is not unique in this respect. Its origins in US defence and intelligence contracting are shared, to varying degrees, by most of the US AI firms now supplying British government departments – a lineage that, for critics like McCann, taints the whole category rather than one company alone.

What’s next?

The NHS contract is the most visible, but it is unlikely to be the only one making headlines this year.

A parallel battle is already under way in London, where Palantir has launched a High Court challenge after Mayor Sadiq Khan blocked a ۵۰-million pound ($۶۷m) Metropolitan Police contract, arguing the decision amounts to stifling free speech.

Khan’s office has since approved a smaller arrangement – a partial reversal that has done little to settle the underlying tension.

For campaigners who have spent years pushing for greater scrutiny of Palantir’s role in British public life, Burnham’s ascent could be the moment the tide finally turns. The NHS break clause falls in March ۲۰۲۷, but a decision needs to be made by December.

Burnham is expected in Downing Street later this month. He will soon decide whether Palantir has a future in Britain’s health service – and, by extension, in the rest of the UK’s public sector.

Al Jazeera reached out to Palantir for comment but had not received a response at the time of publishing.