The UK government’s Arbitration Act 2025 officially came into force today (1 August), formalising reform efforts to revamp the arbitration landscape in England and Wales.
As a modernised version of the 1996 Arbitration Act, the legislation enables arbitration processes to be conducted with fairness, efficiency and transparency by introducing procedural reforms that balance the rights of the parties and uphold due process.
The new act applies to arbitration proceedings commencing from today, as well as commercial litigation initiated in relation to arbitrations that also commence from today. Among the reforms introduced by the act, as outlined in Law Over Borders Guide to International Arbitration published by Global Legal Post, are changes that codify arbitrators’ duty of disclosure and that establish safeguards for arbitrator immunity concerning their potential resignation and removal.
It also introduces the power of summary disposal to resolve specific claims quickly, and it enhances the procedural framework and process for challenges under section 67 of the 1996 act. The new act was proposed by the previous administration and reintroduced by the Labour government in 2024.
Following the case of Enka v Chubb, the act also clarifies in law a new default rule regarding the governing law of an arbitration agreement, which effectively overrules that case.
The courts are given extra powers in support of arbitral proceedings and to assist emergency arbitrators, as well as greater clarity on how to approach a preliminary point of jurisdiction in an arbitration.
Writing in July 2025, the minister of state Sarah Sackman KC, said: “The act includes targeted updates to our arbitral framework that will enhance the fairness and efficiency of arbitration, attract more international business to the UK and generate economic growth.
“It provides an important signal that our jurisdiction is open for business and convinces even more people and businesses from across the world to resolve their disputes on our shores.”
Robert Price FCIArb, chair of the Chartered Institute of Arbitrators’ London branch, commented: “The Arbitration Act 2025 is a significant milestone in London’s long history of arbitration. It signifies an effective and proportionate modernisation of the Arbitration Act 1996, which remains a highly successful piece of arbitration legislation, and helps maintain London’s position as the leading seat for international arbitration.”
Those comments were supported by Professor Loukas Mistelis, the co-chair of London International Disputes Week. He said: “The implementation of the Arbitration Act 2025 is a milestone for our legal community. It underscores London’s ongoing leadership in international arbitration, and, echoing the minister’s words that opened LIDW25, demonstrates our commitment to building resilience, fostering collaboration and driving innovation in dispute resolution.”
Andrew Cannon, global co-head of international arbitration at Herbert Smith Freehills Kramer, added: “The act is aimed at fine-tuning the existing arbitration framework, so we shouldn’t expect immediate or sweeping changes to arbitral practice or procedure.
“However, parties should soon recognise real efficiency benefits emerging – particularly around jurisdictional objections in the courts and the new power introduced for tribunals to dispose of cases and issues summarily.”
He concluded: “While the act codifies an existing duty of disclosure for arbitrators, it serves as a reminder for arbitrators to ensure that their disclosures are sufficient and appropriate. Taken as a whole, the act will reinforce London’s role as a top arbitration seat.”
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