The government is planning to extend spytech firm Palantir’s £330m deal with the NHS despite pressure from Labour MPs, medical unions and activists to cut ties with the company.

Ministers had the option of triggering a break clause in the contract in February. However, a review concluded that removing Palantir and switching providers within four months would be too disruptive, the FT reported, with ministers drawing up plans to potentially replace it with a British alternative in two years’ time instead.

Tech justice campaign group Foxglove said this decision showed “a serious ignorance” of Palantir’s contract, which “specifically requires the firm to provide bridging support for up to 24 months if the contract is ended” to ensure continuity of service.

“The reported claim that it would not be ‘practical to replace Palantir within the next four months’ is, frankly, nonsense,” said Foxglove’s head of communications Tom Hegarty.

The decision comes amid growing opposition to Palantir’s involvement in British public services. The firm has faced criticism over its work with the Trump administration and the Israeli military, while its co-founder Peter Thiel has previously attacked the NHS.

Last week, it was revealed that dozens of UK hospitals reportedly benefitting from a platform built by Palantir are not even using it.

Novara Media also revealed a fortnight ago that British MPs who have criticised Palantir in parliament received intimidating letters from the firm.

Amnesty International’s UK crisis campaigner Tom Guha said: “Patients, healthcare workers and campaigners have pushed ministers to look for a way out of this contract. Ministers must show Palantir the door now, not give it two more years to bed in further.

“Palantir has publicly acknowledged supporting Israel’s military in ‘war-related missions’,” he added. “Any company linked to genocide has no place in our NHS.”

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