- New report says government should do more to
guard against vendor lock-in, and exercise the break clause
in NHS Federated Data Platform contract
- Committee finds no coherent plan in place
to translate government vision for the digital
transformation of public services into a reality
- MPs argue it would be “irresponsible” to roll
out digital ID built on the current digital
infrastructure
Palantir shouldn't play such a significant role in
the UK public sector, a new report by the Science, Innovation and
Technology Committee warns, stressing
that it's not the only
company capable of providing
the ‘middleware' required by public
bodies.
The cross-party committee identifies Palantir as the
most concerning example of the public
sector's growing reliance on a small number
of major technology providers, including Microsoft
and Amazon Web Services.
MPs urge the government to exercise the 2027 break
clause in the NHS Federated Data Platform
Contract with Palantir and either develop an
in-house replacement or seek an alternative
UK provider. The report argues that vendor lock-in
should not be seen as inevitable and calls for a
strategy to end lock-in across the public sector,
diversify suppliers and strengthen digital
resilience.
Reliance on a small number of US-based
providers represents a clear vulnerability, with
ambitions to digitally transform public services
potentially “at the mercy” of foreign actors, according to
the committee.
To address
this, there should be greater clarity
over the government's definition of technological sovereignty,
and a clear strategy to deliver it. Such
a strategy would help identify where the UK
needs sovereign
capabilities, and to support the development
of domestic alternatives to existing
providers in critical
sectors – reportedly a priority for the Chancellor.
The report finds that the lack of clarity
extends to the heart of the
government's vision for a modern
digital state. Whilst
welcoming the ambition, the report notes that
the government has yet to set out what becoming
a “digital state” means in practice. There is no clear plan
to translate ambition into reality
and and the digital roadmap lacks
metrics to assess progress. Challenges have been
compounded by disruption associated with the Government Digital
Service's (GDS) move to DSIT,
with delivery “hamstrung.”
The report calls for the appointment of a Cabinet-level
minister
to drive cross-government delivery of digital
transformation. Alongside this, the government should
undertake an urgent review of
GDS' remit, appoint a permanent secretary-level
Government Chief Digital Officer and head of
GDS to support this new political figurehead, and publish a
detailed delivery plan to ensure
accountability.
The report also highlights serious data hygiene deficiencies
across the public sector, which can only be overcome through a
process of cultural transformation. It calls for a strategy
to deliver this, with greater acknowledgement of
the fact that public sector bodies hold
citizens' data on trust and therefore must meet
the highest standards.
Without addressing the underlying weaknesses in
the UK's
current digital infrastructure and improving
data hygiene, it would be “irresponsible” to roll
out a digital ID system, says the
committee. Public trust and consent
are fundamental to the successful digital
transformation of public services -
failing to effectively protect citizens'
data held or processed for digital
ID would have far-reaching consequences.
Dame MP, Chair of the Science, Innovation and Technology
Committee, said:
“We welcome the government's intentions to
make the UK a ‘truly digital
state,' but it's not
clear how this will be delivered. Without a
detailed and measurable plan, it risks
falling short – but there's still time to put this
right. My committee's report sets out how,
including by putting clear delivery metrics in
place and giving the Government Digital Service the
authority and leadership it needs to drive this
transformation. Ministers
must also prioritise driving up standards of data
hygiene across the public sector in order to build
trust.
“A critical part of this transformation should include
reducing the UK's dependence on a small number
of big US tech companies like Palantir.
Vendor lock-in isn't inevitable,
and the current position leaves
us seriously exposed. The UK can and
should be aiming for technology sovereignty
in critical parts of our
public sector and supporting domestic alternatives through
smarter procurement.
“Only once the foundations of the UK's digital
infrastructure are secure, and public trust has
been gained, should the
government proceed with its planned digital ID. The success
or failure of this project will be a defining
test
of its wider digital transformation ambitions."
