Image: © Igor Kutyaev | iStock

The cross-party Science, Innovation and Technology Committee released a report warning that the UK public sector’s growing dependence on major foreign technology providers is an unacceptable point of weakness.

The report names Palantir alongside Microsoft and Amazon Web Services as dominant players, arguing that this reliance leaves the UK’s goal of modernising public services at the mercy of foreign actors.

A major focus of the report is the concept of vendor lock-in, which happens when a public body becomes so dependent on one company’s technology that switching to a competitor becomes practically impossible or too expensive.

MPs stress that Palantir is not the only company capable of providing the essential connecting software, known as middleware, used by public services.

To combat this issue, the committee urges the government to make use of an upcoming 2027 break clause in the NHS Federated Data Platform contract with Palantir. They suggest the government should use this opportunity to either build an in-house replacement or find an alternative provider based in the UK.

To protect critical infrastructure, MPs are calling for a clear strategy on technological sovereignty, which means ensuring the UK has independent control over its own vital technology. The report notes that developing British alternatives to foreign tech providers is reportedly a top priority for the Chancellor.

However, the committee notes that the government’s overall vision for a modern digital state remains too vague. While the ambition is welcome, there is currently no detailed plan, no clear roadmap, and no official metrics to measure success.

Furthermore, recent reshuffles that moved the Government Digital Service (GDS) into the Department for Science, Innovation and Technology have caused disruptions, slowing progress.

To fix these leadership issues, the report recommends:

• Appointing a Cabinet-level minister to lead digital transformation across all of government.
• Hiring a permanent secretary-level Government Chief Digital Officer to support them.
• Publishing a detailed, measurable plan to ensure everyone is held accountable.

The report also raises serious alarms about poor data hygiene, meaning the way public sector bodies organise, clean, and protect the information they hold. MPs remind the government that public bodies hold citizens’ private data on trust and must meet the absolute highest security standards.

Because of these underlying data weaknesses, the committee warns that it would be irresponsible to roll out a national digital ID system right now. If the government fails to protect citizen data during a digital ID rollout, the consequences could be devastating for public trust, which is essential for any future digital upgrades.

Dame Chi Onwurah, the Chair of the committee, stated that securing the UK’s digital foundations and gaining public trust must happen first, making the digital ID project a defining test for the government’s wider ambitions.