Dispute Resolution | Updated UK Arbitration Act comes into force

The Arbitration Act 2025 came into force on 1 August 2025, introducing targeted reforms to the UK's arbitration regime. The reform was driven by the need to maintain the UK's competitive position in the global arbitration market and to address areas of legal uncertainty that had emerged through case law over recent decades. The UK is not alone in undertaking such reforms, with Germany currently considering similar updates to its arbitration regime, reflecting a broader international trend towards modernising arbitration laws to meet the evolving needs of commercial parties.

The Act applies to arbitration proceedings commenced on or after that date. The new Act introduces carefully calibrated reforms designed to strengthen the UK's position as a destination for international commercial arbitration. The changes fine-tune the existing framework to address practical concerns and enhance clarity.

What’s changing?

Enhanced arbitrator disclosure obligations

Arbitrators are now required to disclose any circumstances that might reasonably give rise to justifiable doubts about their impartiality. This duty extends to matters arbitrators ought reasonably to know, not merely those within their actual knowledge.

Stronger protections for arbitrators

The Act bolsters arbitrator immunity by clarifying that arbitrators face no liability for resignation unless it is proved unreasonable, and no liability for costs arising from removal applications unless they have acted in bad faith.

Summary disposal powers

Tribunals now have the express power to dispose summarily of claims, defences, or issues where a party has no real prospect of success, bringing arbitration more in line with court procedures.

Streamlined jurisdictional challenges

The framework for challenging an arbitral tribunal’s jurisdiction has been refined to prevent re-litigation of issues already determined and to restrict the introduction of new grounds or evidence without court permission.

Clarity on governing law of the arbitration agreement

The Act establishes a clear default rule: unless parties agree otherwise, the law governing the arbitration agreement will be the law of the seat of arbitration.

Expanded court support

The Act confirms that courts can make orders in support of arbitral proceedings against third parties. Emergency arbitrators also have enhanced powers, including the ability to issue peremptory orders and grant permission for certain court applications.

Looking ahead

These reforms represent a measured evolution of the UK’s arbitration regime, addressing areas of uncertainty whilst preserving the flexibility and party autonomy that make arbitration attractive. The changes should enhance efficiency, reduce satellite litigation, and reinforce confidence in London and the rest of the UK as a seat of arbitration.

Reflections for the Nordic region

As countries move forward with modernising their arbitration frameworks, it is worth considering whether similar reforms might benefit the Nordic countries. Periodic reviews of Nordic arbitration legislation could ensure that the region remains competitive and responsive to the needs of commercial parties. We note, for example, that Norway has not updated its arbitration legislation in almost two decades. Given the numerous fundamental changes that have occurred in the arbitration landscape in the intervening years, it is worth asking whether Norway should take a leaf out of the UK’s and Germany’s book.