Ex-Labour deputy Tom Watson warns PM Burnham against 'mob rule' over Palantir government contracts

From the Newshound archive · first published 9 October 2026 · last updated 10 October 2026.

Lord Tom Watson, the former Labour deputy leader turned Palantir senior vice-president, has told his old party colleagues they face "a lot of trouble" if they bow to pressure from unions and MPs demanding the US tech firm is stripped of its £330m NHS software deal and other government contracts. Watson said critics targeting Palantir over its work with the Israeli military and US immigration enforcement amount to "mob rule" over legitimate procurement law. He also confirmed Palantir would work with a Reform UK government on immigration crackdowns if asked. The Socialist Health Association's Rathi Guhadasan hit back, saying what Watson calls mob rule "is simply democracy."

PM Andy Burnham is under pressure from Labour MPs and trade unions to cancel Palantir's contracts, including the £330m NHS Federated Data Platform deal and a £420m Ministry of Defence agreement.

Palantir is already suing London mayor Sadiq Khan in court after he blocked a £50m Metropolitan Police AI contract following Gaza-protest backlash.

Watson, who declined to reveal his salary but said 'it's not bad', joins Nick Clegg and Rishi Sunak among senior political figures cashing in at big tech firms.