The Arbitration Act cleared the UK Parliament and received Royal Assent this week.

The process to reform the Arbitration Act 1996 began in 2023 when recommendations were made by the Law Commission. The new law makes measured amendments to the 1996 Act which will make arbitration fairer and more efficient.

The new Arbitration Act will:

• Clarify which law underpins individual arbitration agreements thereby improving legal certainty and speeding up arbitrations.
• Empower arbitrators to speed-up decisions on issues that have no real prospect of success to make arbitration more efficient.
• Introduce a duty on arbitrators to tell parties any circumstances which could cast reasonable doubt on their impartiality in deciding an outcome of a dispute.
• Empower the court to better support arbitration through orders supporting the actions of emergency arbitrators to enhance their effectiveness, and orders against third parties (those not involved in the proceedings) to for example preserve evidence or take witness evidence.
• Extend arbitrator immunity against liability for resignations and the costs of the application to court for their removal, to support arbitrators to make impartial decisions.
• Simplify court procedures related to arbitration to increase clarity as well as reduce delays and costs for parties.

Cristen Bauer, Head of Policy, The Chartered Institute of Arbitrators (Ciarb):

"Ciarb is delighted to see the Arbitration Act enacted. As the leading global body for dispute resolvers, we worked alongside the UK Law Commission and other officials during the review of the Arbitration Act 1996 and were pleased that the majority of our recommendations were included in the final report, the recommendations of which were adopted in full. The Arbitration Act 2025 will continue to set a high standard internationally, and we look forward to seeing its positive impact in the years ahead."

Ciarb’s responses to the consultations (December 2022 and (May 2023) and subsequent call for evidence (February 2024) were informed by input and insights from our diverse global membership. The vast majority of our recommendations were accepted by the UK Law Commission and are reflected in the Act. We thank our members for their invaluable participation.