The Arbitration Act 2025 takes effect, reshaping dispute resolution in England and Wales
The UK’s long-anticipated Arbitration Act 2025 has officially come into force, ushering in a new era for dispute resolution in England and Wales. Effective from 1 August 2025, the legislation represents the most significant overhaul of the arbitral framework since the Arbitration Act 1996.
Aimed at making proceedings faster, fairer, and more transparent, the act applies to all arbitration cases and related commercial litigation initiated from today. It introduces targeted reforms designed to maintain London’s dominance as one of the world’s premier arbitration hubs.
Modernising the Rules
The reforms codify arbitrators’ duty of disclosure, ensuring they provide relevant information that could affect impartiality. They also introduce safeguards for arbitrator immunity, particularly in cases involving resignation or removal.
Another key innovation is the power of summary disposal, allowing tribunals to dismiss unmeritorious claims or defences swiftly—saving parties both time and costs. The act also refines the process for jurisdictional challenges under section 67 of the 1996 legislation.
Following the high-profile Enka v Chubb decision, the act clarifies the default governing law of arbitration agreements, overturning the case’s effect. Courts will now have expanded powers to support arbitral proceedings, assist emergency arbitrators, and address preliminary jurisdictional issues more efficiently.
Government’s Vision
Minister of State Sarah Sackman KC described the reforms as “targeted updates” that will “enhance the fairness and efficiency of arbitration, attract more international business to the UK, and generate economic growth.” She said the changes send “an important signal that our jurisdiction is open for business” and encourage global parties to resolve disputes in the UK.
Industry Reaction
The legislation has drawn strong endorsements from the arbitration community. Robert Price FCIArb, chair of the Chartered Institute of Arbitrators’ London branch, hailed it as a “significant milestone” that strikes a balance between modernisation and preserving the strengths of the 1996 act.
Professor Loukas Mistelis, co-chair of London International Disputes Week, echoed this sentiment, calling the act “a milestone for our legal community” and evidence of London’s “commitment to building resilience, fostering collaboration, and driving innovation” in the field.
From a practitioner’s standpoint, Andrew Cannon, global co-head of international arbitration at Herbert Smith Freehills Kramer, noted that while the reforms are “fine-tuning” rather than revolutionary, they should yield tangible benefits. “Parties should soon recognise real efficiency benefits—particularly around jurisdictional objections in the courts and the new power for tribunals to dispose of cases summarily,” he said.
Cannon also emphasised that the codification of arbitrators’ disclosure duties serves as “a reminder for arbitrators to ensure that their disclosures are sufficient and appropriate.”
Maintaining London’s Lead
London has long held a reputation as the leading seat for international arbitration, thanks to its robust legal infrastructure and experienced judiciary. By updating its legislative framework, the UK aims to ensure that its position remains secure amid growing competition from other arbitration centres worldwide.
While the reforms may not spark immediate procedural revolutions, stakeholders expect their cumulative effect to improve efficiency, reduce costs, and reinforce trust in London as a seat of choice for resolving complex cross-border disputes.
As the Arbitration Act 2025 takes effect, all eyes will be on how quickly parties and practitioners adapt—and whether the UK’s vision of a more streamlined, globally attractive arbitration regime is realised in practice
