Ministry of Defence: Palantir Contracts

Debate between Baroness Cash and Lord Coaker

Wednesday 11th February 2026 Lords Chamber

[Lord Coaker (Lab)]

Again, that is an extremely important point. There are two things. Of course, single source is something that you try to avoid by having open competition, but there are circumstances where single-source contracts are in the interests of our country. Alongside that, as my noble friend hinted, we are trying to ensure that we develop UK industry and business as well. He will be interested that, as part of the enterprise agreement, it was announced in December 2025 that Palantir would commit £1.5 billion-worth of money to grow British business—to grow small and medium-sized enterprises—and develop skills right across the UK. We were conscious of the fact that it was a contract to a US-based company, as prestigious as it is, and wanted to ensure that the UK gained benefit from it as well. I hope that reassures my noble friend that, to some extent, we took the UK into account with that enterprise arrangement as well.

[Baroness Cash (Con)]

My Lords, it is of note that, as reported by openDemocracy, one of the Labour Party’s largest donations, if not the largest, of £4 million, came from a hedge fund called Quadrature, which has holdings in Blackstone. The openDemocracy website reported that it stood to benefit from government contracts awarded to the likes of Palantir. Will the Minister address this and, if he is unable to do so today, undertake to write and provide further information about that donation, and whether the conflicts were properly examined?

[Lord Coaker (Lab)]

If necessary, I will write to the noble Baroness, but let me reassure her that everything was done properly and appropriately. The decision to award the contract to Palantir was made by the Defence Secretary alone. Of course, I will reflect on what the noble Baroness has said, but what she said is something that a Government would not do in awarding a contract with respect to defence or any other part of the Government. That sort of thing is not allowed to influence decisions. The Defence Secretary made the decision, and he made it on the basis that Palantir was the right company to do this, the right business to do this, and that it was in the interest of our defence and that of our allies to award it that contract.