London Mayor Sadiq Khan has scrapped a planned £50 million AI intelligence partnership between the Metropolitan Police and U.S. tech firm Palantir Technologies, a move that has drawn cautious praise from pro-Palestine advocacy groups and British Green Party politicians who warn that unchallenged smaller existing contracts between the force and the controversial company still stand.
Khan’s official rejection of what would have been Palantir’s largest ever UK law enforcement contract came on Thursday, with the mayor citing a clear, serious violation of UK public sector procurement protocols as the core justification for the decision. Under existing London governance rules, any Metropolitan Police spending exceeding £500,000 requires formal sign-off from the Mayor’s Office for Policing and Crime (Mopac), the independent oversight body tasked with ensuring legislative compliance and transparent public spending.
According to Khan’s announcement during Mayor’s Question Time, Mopac identified multiple critical red flags during its review of the proposed deal. The Metropolitan Police failed to submit its full procurement strategy for pre-approval from the Deputy Mayor for Policing and Crime, as required under Mopac’s formal delegation rules. Instead, the force advanced procurement negotiations all the way to the final contract award stage before requesting oversight approval. Beyond procedural violations, Khan’s office added that the agreement failed to demonstrate guaranteed value for taxpayer money and would have left the force locked into a long-term proprietary technological dependence on Palantir.
The proposed £50m deal was intended to deploy Palantir’s artificial intelligence tools to automate criminal investigation intelligence analysis, but the company has long faced widespread condemnation for its deep ties to the Israeli government and military. In January 2024, after Israel launched its large-scale military campaign in Gaza, Palantir signed a formal contract with Israel’s Ministry of Defense to provide technology for “war-related missions”. Company CEO Alex Karp has openly acknowledged strong demand for Palantir’s services following the October 7, 2023 attacks by Hamas, and the firm’s board held a high-profile meeting in Tel Aviv explicitly framed as an act of solidarity with Israel. Human rights advocates directly link Palantir’s surveillance and AI tools to Israeli military operations in Gaza that have been labeled as genocide by multiple advocacy groups and global political bodies.
Even before the proposed £50m deal, the Metropolitan Police had already secured a series of smaller, lower-value contracts with Palantir that fall just under the £500,000 threshold that triggers mandatory Mopac oversight, a structure that critics say was intentionally designed to avoid public scrutiny. The force launched an initial pilot program with a £10,000 contract, later extending the arrangement for three months at a cost of just under £490,000, bringing the total value to just under the oversight threshold. Under the pilot, Palantir’s AI is already being used to analyze data stored on Met officers’ personal devices, a policy that has drawn fierce criticism from the Metropolitan Police Federation, the union representing Met officers. In late April, the federation warned officers to be “extremely cautious” about carrying their work-issued devices while off duty, arguing that the AI monitoring has severely eroded officer trust in force leadership and sent already plummeting morale even lower.
During a Wednesday meeting of the London Assembly’s Police and Crime Committee, Metropolitan Police Deputy Commissioner Matt Jukes defended the force’s choice to partner with Palantir for the pilot, noting that the firm is already an approved supplier on the UK government’s G-Cloud 14 procurement framework and is widely used across multiple British government departments. Jukes acknowledged that Palantir is a “divisive supplier” from a reputational standpoint, but emphasized that the company’s existing use across 72 NHS trusts and its status on national government frameworks made it a qualified choice for the Met. When asked whether Palantir had offered the pilot at a discounted rate to intentionally avoid crossing the oversight threshold, Jukes said the full cost of the pilot had been clearly documented.
Reaction to Khan’s decision to block the £50m deal has been mixed, with human rights and pro-Palestine groups welcoming the move while pushing for further action to cancel all existing Met contracts with Palantir. Amnesty International UK campaigns manager Kristyan Benedict called the cancellation “positive news”, noting that Palantir tools are currently deployed by the Israeli military during its military campaign in Gaza. The Palestine Solidarity Campaign (PSC), which has led widespread advocacy against the deal, credited its grassroots campaigning for pushing Khan to reject the contract, arguing that “Palantir supplies Israel with AI and surveillance technology used in its genocide in Gaza. It should not receive a penny of public money.” The group is now calling on Khan to go a step further and cancel the existing nearly £500,000 pilot contract, and is demanding the UK government scrap all national public sector contracts with Palantir, including a £330m deal with NHS England to build and maintain a national patient data platform that has been opposed by health workers, patients and human rights organizers across the country.
Green Party London Assembly member Benali Hamdache, who first raised public questions about the Palantir partnership, also welcomed the cancellation of the large contract, but echoed calls to end existing agreements. “It’s good that this £50 million contract was blocked, but the Met still has contracts with Palantir worth nearly £500,000 that haven’t been challenged,” Hamdache said in a statement to Middle East Eye. He added that the current procurement rules, which allow deals under £500,000 to bypass mayoral oversight, create dangerous loopholes that could allow similar controversial agreements to move forward in the future. Hamdache also pointed to additional red flags around Palantir, including the company’s work with U.S. Immigration and Customs Enforcement (ICE) for immigration enforcement operations, and a recent public manifesto adapted from Karp’s writings that openly espouses far-right ideological positions and defends high-profile far-right figures including Elon Musk.
Palantir already holds nearly $1 billion in total contracts across multiple UK government bodies, including the Ministry of Defence, NHS, and multiple regional police forces. Founded by high-profile Donald Trump supporter Peter Thiel, the firm has faced growing grassroots resistance across the UK over its human rights record and geopolitical ties. Critics argue that the current case exposes deep flaws in UK public procurement rules that allow controversial contractors to split large projects into smaller agreements to avoid oversight and public accountability.