Arbitration Act 2025 Now in Force: What Changes for Arbitration Users?

What the Act changes

The Act makes targeted amendments to the 1996 Act rather than replacing it. Its main changes are:

• a new rule on the law applicable to an arbitration agreement: absent express agreement, it is the law of the seat, and choosing a law for the main contract does not count as an express choice for the arbitration agreement;
• a statutory duty of disclosure for arbitrators in relation to impartiality;
• a power for tribunals to make awards on a summary basis;
• express provision for emergency arbitrators;
• stronger arbitrator immunity in applications for removal and on resignation;
• clarified court powers in support of arbitral proceedings in respect of third parties;
• changes to the procedure for challenging an award on jurisdiction under section 67 of the 1996 Act, and to time limits for challenges.

The Act also repeals the provisions of the 1996 Act relating to domestic arbitration agreements.

Which arbitrations are covered

Under section 17, the amendments do not apply to arbitral proceedings begun before the relevant provisions came into force, to court proceedings connected with those arbitrations, or to other court proceedings started before that date. Otherwise they apply to arbitration agreements whenever made. The new governing law rule does not apply to an arbitration agreement derived from a standing offer to arbitrate in a treaty or in legislation of a country or territory outside the UK.

What it means for parties

Because the Arbitration Act 2025 applies to existing arbitration agreements in new proceedings, parties should check whether their clauses expressly choose a law for the arbitration agreement. If they do not, the law of the seat will now govern. Users can also expect tribunals to dispose of weak claims and defences earlier through summary awards, and arbitrators to give fuller disclosure at appointment.

Sources

• legislation.gov.uk: The Arbitration Act 2025 (Commencement) Regulations 2025
• legislation.gov.uk: Arbitration Act 2025
• legislation.gov.uk: Arbitration Act 2025, section 17