'This Reeks': Sir Ed Davey demands investigation into potential Mandelson involvement in government's Palantir contract

Following on from the latest Epstein Files release relating to the Labour Peer’s selection as British Ambassador to the United States, questions have arisen around a meeting that took place in February 2025 with Lord Mandelson, the Prime Minister and the CEO of Palantir Alex Karp in Washington DC.

It’s understood that whilst journalists were made aware of the meeting, there were no accompanying notes of what was said.

In December, a contract was signed, setting out plans for the UK to become Palantir’s European HQ and to develop AI powered capabilities already tested in Ukraine to speed up decision making and military planning.

The meeting came at a time when Lord Mandelson reportedly owned a 24% stake in lobbying firm Global Counsel.

Palantir is one of their clients. However, it’s understood that information was also not made available during his vetting process.

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The government and Palantir deny any future contract was discussed at the meeting, but the Liberal Democrat leader has told LBC any information around any meetings Lord Mandelson was involved in where deals were later signed should be made public.

The information relating to Global Counsel at the time of his appointment pointed to the fact that they had a number of high-profile clients including TikTok, the Premier League, JP Morgan and Shell. There was no mention of Palantir, or OpenAI.

In February this year, Defence Secretary John Healey was asked in the House of Commons about Lord Mandelson’s involvement in the Palantir contract, where he insisted the former British Ambassador had “no role in facilitating it.”

Questions have been raised after the 'Mandelson files' released last week by No10 revealed a letter sent to staff upon leaving his role as US Ambassador in which Lord Mandelson said how “proud” he was of the “UK-US tech deal” signed during his time in Washington.

This was signed in September 2025 and a separate deal to the one involving Palantir with the MOD.

Mr Healey told MPs the decision on the £250million contract was his, citing Palantir’s “unique capabilities and track record.”

The tech company will provide support for software within the MOD and invest up to £1.5billion in UK defence.

Speaking exclusively to LBC on this issue, Leader of the Liberal Democrats Sir Ed Davey said, “Frankly, there should be an investigation into all the meetings Mandelson had where subsequently there were contracts signed by the government.

“What we’ve seen in recent weeks and months should be a concern.”

Asked if there was anything he could do from a Parliamentary perspective, Sir Ed told LBC, “We’re going to press the government, just as we have been doing with files relating to Andrew Mountbatten-Windsor.

“I hope the government is not going to come to the House of Commons and force their hand again. They should publish all these notes and minutes.

“This reeks. Palantir has loads of contracts in our health service, in our defence, probably other parts of the government too.

“Many of us have been worried for some time about how this American technology company, with links to Donald Trump, has got such a vested interest across our government.”

It’s understood an Freedom of Information Request on the meeting in February 2025 has been denied by the government, who have cited ‘cost reasons.'

Indeed, Palantir has been involved in the UK’s defence since 2022, when a deal was signed under the Conservative government.

At the World Economic Forum in Davos in January, Bloomberg reports that Palantir representatives met with the leader of Reform UK, Nigel Farage.

There are concerns around the American company, including its use in the ‘ICE Immigration Raids’ in the US, with claims Officers have been using Palantir to identify people to detain through their medical records.

Here in the UK, Palantir won a £330million contract to work with the NHS, which some are now calling for to be cancelled amid fears it could be used to target people in a similar way.

Green Party leader Zack Polanksi wrote a letter to Health Secretary Wes Streeting last month outlining his concerns around Palantir’s involvement with the NHS, saying “the NHS should not be involved with a company which is actively aiding surveillance for Trump’s paramilitary thugs ICE, and which has played a close role with the Israeli military in the Gaza genocide.

In May last year, Mr Karp was also challenged over contracts with the Israeli military. Responding to the claim “your technology kills Palestinians” the Palantir CEO responded, “That’s true, mostly terrorists."

A spokesperson for the Ministry of Defence said “As we’ve previously said, Peter Mandleson has no involvement in the award of the £240m contract to Palantir.

“There are robust processes in place to ensure government contracts are awarded fairly and transparently, including for the direct award of contracts. The justification for this award has been published online.”

On that February 2025 meeting, a spokesperson for Palantir told LBC “The event in question was a typical Government visit to a business, involving a media photocall.

It provided an opportunity for the PM to meet with representatives of a company that is working with vital UK institutions, at an office located close to the White House, where he had just met with the President. At no point was any future contract discussed.”

Lord Mandelson relinquished his shareholdings in Global Counsel in February following his arrest on suspicion of misconduct in public office.

The company also went into administration earlier this year.

In February, Chairman Archie Norman said "Peter Mandelson no longer has any shareholding, role, or association with Global Counsel and has no influence over the firm in any capacity. Global Counsel is independently governed and led and continues to focus on serving its clients with integrity and professionalism.”

Lord Mandelson’s legal team have been approached for comment.

In relation to his arrest on suspicion of misconduct in a public office, Lord Mandelson has been released under investigation.