Labour warned UK at risk of foreign tech giants ‘pulling the plug’

The Liberal Democrats have warned the UK could face significant risks if foreign technology companies or governments cut off access to critical systems, following ministers' acknowledgment of the dangers posed by reliance on overseas tech. Victoria Collins, the Lib Dems' technology spokesperson, accused the government of handing contracts to foreign tech firms while neglecting British alternatives.

The issue came to light after the government responded to a Science and Technology Committee report, which warned of potential risks related to overly concentrated technology markets and the reliance on allies for access to essential technologies like AI. While the government acknowledged the need to reduce over-dependence, including on narrow supply chains and single points of failure, it maintained the approach would involve diversifying suppliers and building more domestic capabilities, with international allies.

However, Collins argued that the government had not provided a clear plan for what would happen if foreign technology was suddenly inaccessible. She pointed out that Labour had no plan for dealing with such a situation, despite the government acknowledging its risks. Palantir, a US data analytics firm with major NHS and Ministry of Defence contracts, has been particularly scrutinized.

The company holds contracts worth up to £330m over seven years for the NHS and £240m for the MoD, generating £427m of UK revenue last year. Its largest US hub is in London, accounting for over one in six of its employees. However, Palantir has faced criticism for its role in public services and work for the US government and military clients.

The scrutiny comes as former Labour deputy leader Tom Watson joined the company as a senior vice president.