Met Police Palantir contract blocked by City Hall

The Metropolitan Police has been blocked from signing a contract worth up to £50m with the US technology firm Palantir, after London's deputy mayor refused to approve the deal.

The Met had proposed a £25.3m contract with Palantir UK for 2026-27 to support criminal investigations and reforms aimed at improving the force's culture and standards. It included an optional one-year extension worth a further £24.8m.

But the Mayor's Office for Policing and Crime (MOPAC) said it was not satisfied the Met had adequately ensured or demonstrated value for money.

It also cited concerns around the firm's values and ethics, although legally this cannot influence a deal refusal.

The Met and Palantir have been asked for comment.

Palantir, founded by the US billionaire Peter Thiel, has faced criticism over its work with US Immigration and Customs Enforcement (ICE) and the Israeli military, prompting calls for public bodies to consider the ethics when awarding contracts.

A spokesperson for City Hall said that "a broader question remains over whether a company's values and ethics should be considered during public procurement".

"The mayor believes Londoners would want public funding to go only to companies that share the city's values, but this is not currently possible under procurement law," they said.

"He is expected to raise the issue with the government in due course."

They added that there were wider concerns about public sector contracts that can lock buyers into a single supplier, with costs rising over time and few options to switch provider.

In a letter to the force sent on Wednesday, the deputy mayor for Policing and Crime, Kaya Comer-Schwartz, said the Met had failed to obtain approval from MOPAC for its procurement strategy, despite being specifically reminded of the requirement.

She described this as a "clear and serious breach" of the rules.

Comer-Schwartz said the Met had only seriously engaged with one potential supplier, Palantir, and had not adequately tested the market to establish whether the firm was the best or most economical provider.

She also raised concerns about cost. The contract's value had risen from an initial estimate of £15m - £25m a year to the top of that range following direct negotiations with Palantir, and she was not satisfied the Met could fund it without "unacceptable adverse impact" on other budgets.

Any Met investment above £500,000 must be signed off by MOPAC under rules designed to ensure compliance with legislation and provide independent oversight.

The cost of an earlier pilot project the Met carried out with Palantir fell below the £500,000 threshold and so did not require MOPAC review or approval.

She said she continued to support the Met procuring technology to improve its operations, and that MOPAC stood ready to work with the force on a new procurement process.

Listen to the best of BBC Radio London on Sounds and follow BBC London on Facebook, X and Instagram. Send your story ideas to hello.bbclondon@bbc.co.uk