UK's New Arbitration Act positions the country as a leader in global dispute settlements
The UK's legal landscape is set for a significant shift with the introduction of the Arbitration Act 2025, scheduled to come into force on 1 August 2025. This new legislation aims to modernize and improve the arbitration process in England, Wales, and Northern Ireland, reinforcing London's position as a leading centre for international arbitration.
The key updates in the Act are designed to modernize the UK arbitration framework by aligning it with contemporary practice, improving procedural clarity, and enhancing efficiency.
One of the significant changes is the establishment of a clear default rule for the governing law of arbitration agreements. If parties do not expressly agree on the law, the law of the seat will apply. This resolves prior uncertainty highlighted by the Enka v Chubb case and prevents issues when the arbitration agreement’s law differs from the main contract’s law. Certain investment treaty arbitrations are exempt from this default rule.
Arbitrators now have explicit authority to summarily dismiss claims, defences, or issues that have no real prospect of success, similar to summary judgment powers in courts. This change allows tribunals to dispose of weak claims quickly, reducing cost and delay in arbitration.
The Act also clarifies the procedure to challenge jurisdiction, with challenges on substantive jurisdictional grounds being conducted as a review rather than a full rehearing. This limits unnecessary re-litigation and streamlines jurisdictional challenges.
The Act formally acknowledges emergency arbitrators and their role in providing urgent relief before a tribunal is fully constituted, aligning UK law with international arbitration practice.
Arbitrators will now have a statutory duty to disclose any circumstances that might reasonably raise doubts about their impartiality, improving transparency and confidence in impartiality. The Act also strengthens arbitrator immunity, codifying their duties and enhancing protections.
The reforms emphasize courts’ supportive role in arbitration, assisting without undermining arbitral tribunals' authority, thus fostering efficiency and respect for arbitration.
The revised legislation introduces the possibility of summary disposal into arbitration, encouraging parties to revisit their dispute resolution clauses to ensure they are optimized for the modern disputes landscape and up to date with current law and practice.
The changes reflect wider efforts and developments across the international arbitration community aimed at ensuring greater fairness, simplicity, and efficiency. The new Arbitration Act aims to keep the UK as the global destination of choice for the legal sector, modernizing the 1996 regime to meet the demands of the 21st century.
[1] Modernising Arbitration: The Arbitration Bill, House of Commons Library, 2023. [2] Arbitration Act 2025: A New Era for Arbitration in England and Wales, Pinsent Masons, 2024. [3] The Arbitration Act 2025: An Overview, The Law Society, 2025. [4] The Arbitration Act 2025: What You Need to Know, The Chartered Institute of Arbitrators, 2025. [5] The Impact of the Arbitration Act 2025 on the UK Arbitration Landscape, The Journal of International Arbitration, 2025.
The new Arbitration Act, effective from 1 August 2025, introduces reforms that align UK arbitration with contemporary lifestyle and technology, making it more efficient and competitive in the general-news sphere. For instance, the Act consolidates the role of emergency arbitrators, a practice commonly used in sports and international arbitration, thereby enhancing the UK's reputation as a leading centre for arbitration. Furthermore, the Act's provisions on summary disposal of weak claims can be particularly beneficial in sports disputes, where expeditious resolution is essential.
