Watson warns Labour colleagues against ‘mob rule’ in procurement
Tom Watson, the former UK Labour deputy leader now serving as a senior vice-president at US technology firm Palantir, has told his former colleagues they risk “getting themselves in a lot of trouble” if “mob rule” is allowed to dictate public procurement. Watson made the comments on the BBC podcast Political Thinking with Nick Robinson.
“One of the things I’d say to my former colleagues is: do you want to let the rule of law lead procurement practice, or do you want to let mob rule to lead procurement practices?” Watson said. “Because you get yourself in a lot of trouble if you go down on the latter one.”
His intervention comes as the prime minister, Andy Burnham, faces pressure from Labour MPs and unions to end Palantir’s involvement in UK public services, including a £330 million software deal with the NHS. The company is also fighting London mayor Sadiq Khan in court over his block on a £50 million contract to use Palantir’s AI in Metropolitan police investigations.
Palantir was co-founded by Trump-supporting billionaire Peter Thiel and has provided AI-powered software to the Israeli military and to US Immigration and Customs Enforcement. Its existing UK annual turnover is £427 million, and it is seeking additional public sector work.
Watson, a defence minister and minister for digital engagement in Gordon Brown’s government, announced his new full-time role at Palantir last month, calling the firm “the most interesting company on the planet.” He has been a part-time adviser to Palantir since 2024, according to the company, and has taken a leave of absence from the House of Lords and relinquished his parliamentary pass while working for the firm in London.
Asked whether he would work with a Reform UK government on immigration enforcement, Watson said: “We don’t actually work in that sector, but yes, of course we would.”
Watson said he believed Palantir was being “very targeted by the people that are targeting Israeli companies” and suggested the criticism stemmed from its work in Israel. “We’re not an Israeli company, but because of our work in Israel, we found ourselves in the middle of the row of the Gaza protests,” he said.
Labour MP Chi Onwurah, who chairs the science, innovation and technology committee, responded on BBC Radio 4’s Today programme: “Tom is not the first politician to be blinded by tech hype. The key issue is we can’t be so dependent on one company. It’s a US company, subject to US legislation regarding access to our data.” Onwurah’s committee has raised concerns about Palantir.