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Khan blocks £50m Palantir deal with Met Police

Financial Times Companies •
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London mayor Sadiq Khan has halted the Metropolitan Police’s planned purchase of data‑analytics firm Palantir, a deal valued at £50 million. The Mayor’s Office for Policing and Crime (MOPC) concluded that the contract breached multiple procurement rules, describing the violations as “clear and serious.” Khan’s intervention stops a project intended to modernise crime‑fighting tools across the capital.

The aborted contract would have given the Met access to Palantir’s AI‑driven analytics platform, promising faster link analysis and predictive policing. Critics warned that the vendor’s US‑based operations and opaque data‑sharing practices could conflict with UK privacy standards. By blocking the spend, Khan protects the city’s £1.2 billion policing budget from potential legal challenges.

The decision underscores growing scrutiny of large‑tech contracts in public safety and may signal tighter oversight for future digital procurements. Law firms representing the Met are expected to review the MOPC report and advise on remedial steps. For now, the £50 million Palantir project remains suspended, and the Met must seek an alternative solution.

Investors watching the London policing budget note that the aborted deal removes a sizeable technology outlay from the city’s accounts, potentially freeing cash for other priorities such as officer recruitment. However, the loss of Palantir’s analytics may delay planned upgrades to crime‑data integration, a factor local businesses will monitor as it could affect perceived safety in key commercial districts.