City Hall Blocks Metropolitan Police’s £50 Million Palantir Contract Over Value and Procurement Breaches

London’s Deputy Mayor for Policing and Crime, Kaya Comer-Schwartz, has formally rejected a proposed £50 million contract between the Metropolitan Police and the US data analytics firm Palantir UK. The decision, communicated in a letter on Wednesday, cited significant procurement failings and a lack of demonstrated value for public money.

The Metropolitan Police had intended to award Palantir a £25.3 million contract for 2026-27, with an optional £24.8 million extension, ostensibly to support criminal investigations and a programme of internal reforms. However, the Mayor’s Office for Policing and Crime (MOPAC) was not satisfied with the force’s justification for the expenditure.

Procurement Failings and Value Concerns

Comer-Schwartz stated that the Met had failed to secure MOPAC approval for its procurement strategy, despite explicit reminders, constituting a “clear and serious breach” of regulations. MOPAC scrutiny is mandatory for any Met investment exceeding £500,000. The Deputy Mayor noted that the Met had primarily engaged with Palantir as the sole potential supplier, failing to adequately test the market for alternative or more economical providers.

Concerns were also raised regarding the contract’s escalating cost, which had risen from an initial estimate of £15 million-£25 million annually to the upper end of that range following direct negotiations. MOPAC questioned the Met’s ability to fund the contract without “unacceptable adverse impact” on other departmental budgets.

Ethical Considerations and Wider Implications

While legally unable to influence the contract refusal, MOPAC highlighted broader concerns regarding Palantir’s corporate ethics, particularly its controversial work with US Immigration and Customs Enforcement (ICE) and the Israeli military. A City Hall spokesperson indicated that the Mayor believes public funding should be directed towards companies aligning with London’s values, a principle currently constrained by procurement law. This issue is expected to be raised with the central government. Wider concerns also persist about public sector contracts that create single-supplier dependencies, potentially leading to increased costs and reduced flexibility over time.

The Metropolitan Police expressed disappointment with the decision, arguing that it needed to “modernise and use the very best technology available” to counter hostile states and organised crime. The force maintained that its procurement process had diligently followed the government’s Crown Commercial Services Framework, used by the Ministry of Defence, NHS, and other police forces. With an anticipated £125 million funding shortfall and a planned reduction of 1,150 posts, the Met asserted that new technology was crucial for maintaining service delivery while facing a third consecutive year of shrinkage.