The substantive reforms contained within the Arbitration Act 2025, which received Royal Assent on 24 February, will come into full force on 1 August 2025. The reforms will apply to all English-seated arbitrations commenced on or after this date.
The Arbitration Act 2025 (the 2025 Act) was the conclusion of a detailed consultation process into the arbitration framework in England, Wales and Northern Ireland. The changes reflect the Law Commission’s recommendations and have been widely praised for their balanced and pragmatic approach.
A summary of the key changes can be seen in our previous LawFlash on the Arbitration Act 2025, but include:
- A new rule on the governing law of an arbitration agreement
- A new power for tribunals to make an arbitral award on a summary basis
- A new framework for jurisdictional challenges to awards under Section 67
- The codification of the statutory duty of disclosure
- A strengthening of arbitrator immunity concerning resignation and applications for removal
- The clarification of court powers in support of emergency arbitrators
The changes within the 2025 Act apply to any applicable arbitral proceedings initiated on or after the date when its substantive provisions come into force; the recently published Arbitration Act 2025 (Commencement) Regulations 2025 (SI 2025/905) confirms that the applicable date will be 1 August 2025.
London has long been a hub of international arbitration. This was affirmed in the recent sixth edition of the Queen Mary School of International Arbitration’s survey “Forward: Realities and Opportunities in Arbitration.” Based on responses from more than 2,400 arbitration professionals, the survey retained London as the top arbitration seat globally having been selected by 34% of respondents, followed by Singapore.
London’s appeal as a seat for arbitrations stems from the strength, diversity and dynamism of the London legal market with the presence of international law firms, experts, legal tech suppliers and funders. Its robust legislative framework further supports this reputation.
Accordingly, the 2025 Act’s focus was on a few significant reforms aimed at modernising the arbitration process without seeking to carry out a “root and branch” reform. The updates will help make the process more flexible, fair and efficient for both domestic and international parties, including by simplifying procedures to reduce costs.
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