THE UK ARBITRATION ACT IN A SHIFTING GLOBAL LANDSCAPE
London’s role as a leading hub of international arbitration is of significant economic importance. Every year there are at least 5000 domestic and international arbitrations in England and Wales, contributing at least £2.5bn to the UK economy annually in fees alone. Against this backdrop, the UK Arbitration Act 2025 has come into force, marking a key step forward in the bid to help maintain London’s global standing.
Other arbitration hubs around the world are also vying to increase their share of the market, seeking varying points of differentiation. All, however, are largely united in their ambition to deliver a more efficient arbitration experience for legal practitioners.
These aims are expressed clearly by the UK government, which describes the new Act – an update to the 1996 Arbitration Act – as having been developed with the intent to modernise dispute resolution and “turbocharge” the UK’s position internationally.
Clarity and certainty
The Act does not entail a radical overhaul of UK arbitration law. Instead, the incremental changes it contains reflect the recommendations from the preceding Law Commission Review and focus on codifying best practice and offering certainty to the parties engaging in arbitration.
For example, key provisions include: (i) clarifying the governing law of arbitration agreements; (ii) a statutory duty of disclosure to ensure greater confidence in an arbitrator’s impartiality; (iii) an extension of the immunity of arbitrators around resignation and removal to allow them to act independently without liability; (iv) supporting emergency arbitrators by granting them enforceable powers; (v) enabling summary disposals for certain claims, thereby streamlining proceedings; (vi) confirming the powers of the court with regard to third parties to support arbitrations; and (vii) revising the framework around challenges under section 67 of the 1996 Act.
Jul-Sep 2025 issue
Opus 2