11th August 2025

The Arbitration Act 2025: A New Era for UK Arbitration Law

The Arbitration Act 2025 (the 2025 Act) marks a significant milestone in the evolution of arbitration law in the United Kingdom. Building upon the foundation of the Arbitration Act 1996, the new legislation seeks to make arbitration a more robust and effective way for parties to resolve disputes without formal court proceedings.

The main focus on the reforms were aimed at multi-jurisdictional disputes, with the hope of making the UK a premier destination for international arbitration. However, whilst the focus of the Act is to attract international parties to the UK’s lucrative dispute resolution market, the changes also have an impact on regional disputes and make arbitration a more attractive offering for litigants as a whole.

 

Key Changes Introduced by the Arbitration Act 2025

  • Summary Disposal of Unmeritorious Claims

One of the 2025 Act’s most consequential reforms is the introduction of a mechanism for the summary disposal of unmeritorious claims and defences. This effectively works in the same way as the court’s summary judgment and strike out powers for civil proceedings, whereby an arbitrator has the power to make an early determination that a claim or defence is utterly hopeless and strike it out before further time and costs are wasted.

Of course, this puts a greater duty on the claimants to ensure that their case is properly pleaded from the outset, to make sure that it is not deemed unmeritorious, but it saves the costs and expense of baseless claims proceeding to a full arbitration.

 

  • Arbitration Agreements and Governing Law

Under the 2025 Act, unless otherwise agreed, the law of the seat (i.e., the place of arbitration) will govern the arbitration agreement. This change amends a criticism of the 1996 Act which left the question in international disputes of which countries’ law should govern the arbitration. This provides certainty and predictability, in line with international practice.

 

  • Clarification of the Arbitrator’s Duty of Disclosure

The 2025 Act brings in a requirement for arbitrators to disclose circumstances that might reasonably give rise to doubts as to their impartiality, such as personal or business relationships with a party. The 2025 Act confirms a continuing duty throughout the arbitration, aligning the UK with best practices in international arbitration.

In reality, instances of arbitrators acting impartially would be rare, not least because the arbitrator’s own professional regulations would prohibit them from acting where there is a conflict of interest. As such, this amendment is likely more about promoting the robustness of the UK’s dispute resolution market to international parties rather than making a meaningful change.

 

  • Appeals and Challenges to Awards

The 2025 Act narrows the grounds for challenging arbitral awards for serious irregularity only and clarifies the procedure for appeals on points of law.

The time limits for bringing challenges are now stricter, and parties must obtain leave to appeal in more circumstances, reducing frivolous or tactical challenges designed to delay enforcement.

This gives more finality to the arbitrator’s award and makes arbitration a more viable means of alternative dispute resolution as there is less risk of the award being overturned.

 

  • Use of Technology and Remote Hearings

The 2025 Act recognises the widespread adoption of technology in dispute resolution. It enables tribunals to conduct hearings remotely, use electronic bundles, and order electronic disclosure as a matter of course.

 

  • Confidentiality Provisions

The 2025 Act includes for the first time statutory provisions regarding the confidentiality of arbitration proceedings, subject to certain exceptions (e.g., legal duty, public interest, or enforcement proceedings). This is of particular importance to company disputes, where the parties may not want the details of the dispute being made public.

 

  • Recognition and Enforcement of Awards

The 2025 Act strengthens the framework for the recognition and enforcement of arbitral awards, making it easier to convert awards into court judgments.

 

Conclusion

The Arbitration Act 2025 brings the UK’s arbitration framework up to date with global best practices, enhancing efficiency, clarity, and party autonomy. For potential claimants, the 2025 Act offers greater transparency, less scope for delay, and improved prospects for the summary disposal of weak claims. At the same time, it imposes higher standards of preparation and discipline, reducing opportunities for speculative or tactical litigation.

For expert advice on this topic, contact our team at info@bussmurton.co.uk or call 01892 510 222.

Jonathan Manser

Jonathan Manser
Associate Legal Executive