Microsoft Under Scrutiny Over NHS Contract Spending And UK Technology Concerns

Debate has intensified within Whitehall regarding the reliance on American technology firms after members of Parliament questioned government spending on Microsoft contracts. The latest focus lies on a five year agreement providing productivity tools to the NHS reportedly worth over seven hundred million pounds. In the 2024 to 2025 financial year alone, the government invested one point nine billion pounds in Microsoft software licences, intensifying scrutiny of contract value and technology sovereignty.

Samantha Niblett, Labour MP for South Derbyshire, claimed during a select committee session on science, innovation and technology that Microsoft has exploited its dominant position, referring to the firm as having “ripped off the NHS.” While Niblett did not provide further evidence to support this charge, she highlighted a pattern where initial deals appear attractive, only to escalate in cost once clients are contractually bound. Instances where government departments such as the Department for Food and Rural Affairs were compelled to renew outdated software, leading to additional security expenditure, have fuelled criticism of current procurement methods.

Committee chair Chi Onwurah expressed surprise at the allegations, prompting a wider discussion on the need for greater scrutiny of large scale technology contracts. Ian Murray, the minister for digital government and data, acknowledged the concerns. Government strategy executives admitted that value for money across the twenty one billion pounds spent annually on public sector technology remains unsatisfactory. Fragmentation and the lack of a cohesive digital procurement policy have been identified as persistent issues.

The UK’s heavy reliance on American firms, such as Palantir, which holds a three hundred and thirty million pound contract for a federated data platform, has become a point of concern. Emily Darlington, Labour MP for Milton Keynes Central, questioned why British companies are not awarded more significant contracts, noting the implications for national security and public trust. The argument is that nurturing domestic capability could not only boost local economies but also address sovereignty and resilience challenges.

Government representatives indicated intentions to enhance UK technology capacity and promote fairer competition in public sector contracts. Addressing procurement practices and facilitating the participation of smaller, local providers have emerged as central policy aims. The ongoing debate signals a shift towards greater scrutiny of technology spending and a call for rebalancing away from dependency on a narrow pool of large international suppliers.