Ex-Labour deputy leader joins AI giant Palantir after Sadiq Khan’s clash over £50m Met deal

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Tom Watson called Palantir 'the most interesting company on the planet' and said it does 'work of real consequence'

Former Labour deputy leader Tom Watson is facing criticism after taking a senior vice-president role at tech giant Palantir, which holds major UK Government contracts, including with the NHS and Ministry of Defence.

Announcing the appointment, Mr Watson called Palantir “the most interesting company on the planet” and said it does “work of real consequence” helping Britain and its allies, police and the NHS.

He acknowledged concerns over technology, data and sovereignty, saying: “Some criticism is propaganda. Some raises legitimate questions about large technology companies and sovereign control.”

Mr Watson said his role would include correcting “false information”, while ensuring “privacy, security and respect for sovereignty” are central to Palantir’s work.

His appointment has drawn criticism from Green MP Sian Berry, who accused him of being employed “to lobby his friends in the Labour Government”, and called it a “disgrace” that he remains a House of Lords member and holds the Labour whip.

Critics have also highlighted Palantir’s work with the Israeli Defence Forces and US Immigration and Customs Enforcement.

The appointment could put Mr Watson at odds with Labour figures critical of Palantir, including London Mayor Lord Sadiq Khan and others opposing its government contracts.

The ex-deputy leader of Labour announced the role four months after taking a leave of absence from the Lords, following the return of his prostate cancer.

Ms Berry, added: “Palantir, with its work for Ice in the US and the IDF, has no business at all in our NHS and public services.

“This is yet another example of the corrosive revolving door between politics and big business lobbying that has no place in public life.”

Palantir is suing London Mayor Lord Sadiq Khan of Tooting’s office, after he blocked a £50 million deal with the Metropolitan Police.

The Mayor argued that the deal with the US tech company was a "clear and serious breach" of procurement rules.

Scotland Yard was accused of negotiating with only one supplier, with no evidence of "demonstrated value for money".

The agreement was designed to automate intelligence analysis in criminal investigations and would have marked the largest ever contract in British policing.

Prime Minister Andy Burnham, meanwhile, is under significant pressure from Labour MPs and unions to ditch Palantir from government contracts.

Lord Watson wrote on X: “London is comfortably its largest centre outside the US, home to more than one in six employees, the highest proportion among the world’s largest technology companies.

“Part of my role will be to correct false information while working with our engineers to ensure privacy, security and respect for sovereignty are at the heart of everything we do.”

The Labour peer was diagnosed with non-aggressive prostate cancer in March 2023 and later received the all clear.

However, the former minister said on Substack in May that he was told earlier in the year that the cancer had returned.

Lord Watson said initial tests suggested the second bout of cancer had “gone” but he was due to undergo more checks later this summer.

Louis Mosley, executive vice president of Palantir for the UK and Europe, defended the appointment against claims of “blatant vested interests” in the UK Parliament.

Mr Mosley wrote on X: “He can’t vote. Tom has taken a leave of absence from the Lords and given up his parliamentary pass. He cannot attend, and he cannot vote on anything.

“We’ve gone further, in writing, in Tom’s contract: Every access and privilege arising from the peerage is revoked, including what a peer on leave of absence would ordinarily keep. He cannot return as an active member while he works at Palantir. He cannot use the title in any dealing on Palantir’s behalf.”

The executive said "blatant vested interests need to be removed from our Parliament", adding: "If people want to go and make loads of money lobbying for big US AI companies fine – but they should hand back their peerage rather than being allowed to vote on legislation affecting those same companies. It reeks.”