Analysis

UK defence ministry spent £186mn more on Palantir than value of public contracts

An FT analysis of a dozen official MoD spending spreadsheets finds the ministry paid Palantir £282mn in the decade to March 2026, against £95.9mn in published contracts: a £186mn gap. More than 80% of the £282mn went through non-competitive procurement. In December the MoD signed a three-year £240.6mn software contract with Palantir, which started in April 2026 without a tender, saying 'only Palantir has the design familiarity and technical expertise'. The FT also notes a Boeing direct award worth up to £354mn and that NESO extended Palantir arrangements without rival bids. Dame Chi Onwurah says this 'fails the transparency, accountability and therefore the public trust test'; Stotles' Dallán Ryan says the MoD 'plays by slightly different rules'. Last month the FT reported UK figures pushing British alternatives for MoD and NHS England contracts. Counterweights: at least one contract was withheld for national security reasons, and it is unclear whether that explains the whole gap; the MoD says all spending is disclosed in official records; Palantir said it could not comment for national security reasons.

Why it matters

Defence software buying is a big market for European defence-tech start-ups, and this shows how much UK spend flows to one US vendor without competition. Scrutiny of single-source awards strengthens the case for British and European alternatives. Part of the gap may be legitimately classified, so it is a transparency story, not proof of wrongdoing.

Read the full article: Financial Times

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