Sadiq Khan Blocks £50m Palantir Met Police Contract Amid Procurement and Ethics Concerns

London Mayor Blocks Contract Over Procurement Failures

Sadiq Khan has blocked a £50m contract between the Metropolitan Police and US tech firm Palantir, triggering a heated public dispute over AI technology for criminal investigations and law enforcement priorities. The Mayor's Office for Policing and Crime (MOPAC) cited a "clear and serious breach" of breaches in procurement rules, stating that Palantir was the only supplier Scotland Yard had seriously considered for the two-year deal1

1

. City Hall was originally told the Met Police contract would cost between £15m and £25m per year over two years, but following negotiations, the Metropolitan Police increased the figure to £25m annually, bringing the total to £50m1

1

. MOPAC said it was not satisfied the cost could be met without placing "unacceptable" pressure on other budgets, raising concerns about value for money1

1

.

Palantir Accuses Khan of Politics Over Public Safety

Louis Mosley, who heads Palantir in the UK and Europe, launched a sharp rebuke against the London Mayor blocks contract decision, accusing Khan of "putting politics above public safety"2

2

. Speaking to Times Radio, Mosley said: "Not allowing the Metropolitan Police to have this software will give hostile states and criminals an advantage. It'll mean they cannot put more officers on the front line"1

1

. He added: "What Londoners value is not being mugged, not being raped by a serving police officer"2

2

. The Met had planned to use AI tools from Palantir to automate aspects of intelligence analysis, scanning criminal intelligence data for patterns and clues to speed up investigations2

2

. Scotland Yard warned it would have to cut officer numbers if the deal does not proceed, potentially affecting the force's ability to keep London safe1

1

.

Ethics Concerns and Labour Party Tensions

The decision has exposed tensions within Labour over Palantir's involvement with controversial clients. Khan has previously stated that Londoners only want public money paid to companies that "share the values of our city"2

2

. City Hall is understood to be considering whether a company's ethics should factor into procurement decisions1

1

. Palantir, co-founded by tech billionaire Peter Thiel, a prominent donor to US President Donald Trump, works for the Israeli military and the Trump administration in its immigration crackdown2

2

. When Palantir CEO Alex Karp was challenged that "Palantir kills Palestinians" in Gaza, he responded: "Mostly terrorists, that's true"2

2

. Labour MPs including Rosena Allin-Khan and Clive Lewis defended Khan's decision as the "right call," with Allin-Khan stating: "Palantir does not reflect the values of our city"2

2

. However, Business Secretary Peter Kyle said Palantir could do things "no one else does around the world at the moment," calling on Khan to "come out and explain" his decision2

2

.

National Security and Foreign AI Companies Debate

The controversy highlights broader concerns about national security and reliance on foreign AI companies in delivering public services3

3

. Khan's stance puts him at odds with the UK government, which has a £330m NHS England deal with Palantir and a £240m deal with the Ministry of Defence2

2

. Kyle acknowledged the need for less reliance on foreign suppliers, saying: "We need to have more British AI companies that can do those kinds of things, which is why I've taken equity stakes in British AI firms and British tech firms, so that we can scale them up much, much faster"2

2

. Scotland Yard initially appointed Palantir on a separate deal worth less than £500,000 to detect rogue officers by scanning rosters and systems, which the Metropolitan Police Federation criticized as a "big brother" system2

2

. The company already holds contracts with smaller UK police forces including Bedfordshire and Leicestershire2

2

.