Arbitration Act 2025 - what you need to know

The Arbitration Act 2025 (the Act) officially came into force today (1 August 2025).

As anticipated in our previous article, the Act provides some welcome amendments to the Arbitration Act 1996, helping to fine-tune the arbitration framework in England and Wales (E&W) and cement London’s position as a leading international centre for arbitration and dispute resolution.

Key changes

The governing law of arbitration agreements: The Act reverses the Supreme Court’s decision in Enka v Chubb. Now, if an arbitration agreement does not specify its governing law, the law of the seat of arbitration will apply. This change provides clarity and reduces complexity.

Summary disposal: The Act explicitly grants tribunals the power to summarily dispose of cases with no real prospect of success, which is like the court's power under CPR 24.3.

Arbitrators’ impartiality: Codifying the decision in Halliburton v Chubb, the Act mandates that arbitrators should disclose any circumstances that might raise doubts about their impartiality. This duty applies from the moment an arbitrator is approached for appointment and includes circumstances they ought reasonably to be aware of.

Arbitrators’ immunity: The Act enhances arbitrators’ immunity by protecting arbitrators from liability for resignation (unless the resignation was unreasonable) and confirming that arbitrators will not be liable to pay costs in any court proceedings seeking their removal (unless they acted in bad faith).

Court powers in support of arbitration: The Act strengthens the court’s powers to support arbitration. It confirms that emergency arbitrators have the same power as ordinary arbitrators to make peremptory orders that are enforceable by the court. The Act also clarifies that the court can issue orders in support of arbitration against third parties, such as potential witnesses or those holding evidence.

Court reviews of jurisdictional challenges: To address concerns around efficiency and costs, the Act provides that, where the tribunal has ruled on its own jurisdiction, in any subsequent jurisdictional challenge, the court will not entertain new grounds of objection or new evidence (unless the applicant can show that the ground or evidence could not reasonably have been put before the tribunal) or re-hear evidence.

What do these changes mean in practice?

Increased certainty and efficiency

• The changes relating to the governing law of arbitration agreements will benefit international parties in particular. It is now clear that the governing law of an arbitration agreement will be the law of the seat. This will reduce the risk of satellite disputes.
• The introduction of express powers to summarily dispose of unmeritorious claims or defences will enable tribunals to dispose of claims or defences that are lacking in merit more efficiently and cost-effectively. We are therefore likely to see an increase in cases being summarily disposed of as a result. The LCIA has also confirmed that it is considering introducing fast-track procedures to its rules in light of these new summary disposal provisions.
• The reforms to jurisdictional challenges will help to streamline the process, reducing time, costs and the risk of duplication.

The role of the arbitrator

• The new requirements relating to arbitrators’ impartiality will put the impetus on arbitrators to make enquiries as to any circumstances that might call their impartiality into question (and to do so at the outset of the case). This reduces the risk of hidden conflicts and impartiality issues. It also reduces the risk of impartiality challenges being raised part way through an arbitration, which can result in additional costs and delay.
• The enhancement of arbitrators’ immunity will also ensure that arbitrators are suitably protected, thereby increasing the confidence of arbitrators and their willingness to accept appointments.

Support from the Courts

• The introduction of additional court powers will ensure that arbitrations receive an appropriate level of support from the courts. This will help to ensure that arbitration remains an effective form of dispute resolution and that E&W maintains its reputation as an arbitration-friendly jurisdiction.

Final thoughts

The Act optimises rather than overhauls the arbitration framework in E&W. It also ensures that arbitration remains an appealing form of dispute resolution and is still often likely to offer an attractive alternative to litigation.

If you would like to discuss the Act or any arbitration issues, please get in touch.

This publication is intended for general guidance and represents our understanding of the relevant law and practice as at May 2025. Specific advice should be sought for specific cases. For more information see our terms & conditions.