UK Arbitration Bill progresses to second reading
The UK Arbitration Bill reached its second reading in the House of Lords on 31 July 2024.
Ciarb is encouraged to see the rapid progression of the Arbitration Bill through the UK legislative process since the King’s Speech on 17 July 2024.
The Arbitration Bill seeks to modernise the Arbitration Act 1996, making, as Lord Ponsonby of Shulbrede commented, “measured rather than wholesale reforms of the 1996 Act to bring the law up to date and modernise the arbitral framework.”[1]
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 Bill. In particular, the UK Government helpfully clarified that the new default rule regarding the law applicable to the arbitration agreements will not apply to investor-state agreements.
The UK Law Commission estimates the value of the sector to be "worth at least £2.5bn to the British economy each year, while according to industry estimates, international arbitration grew by some 26 percent between 2016 and 2020."
The amendments will ensure that England, Wales and Northern Ireland continue as global centres for arbitration.
As part of the process, the Public Bill Committee invited views from Ciarb and other organisations on the issue of corruption. Our formal response was submitted in April 2024. Ciarb members can read a summary of our position in the Summer 2024 issue of Resolver which is available through MyCiarb.[2] The article includes links to relevant Ciarb Guidelines and resources, along with links to other useful resources from the sector.
Looking ahead, Ciarb is encouraged by the UK Government’s acknowledgement of the seven key recommendations we put forward following the General Election in July 2024. We look forward to continuing our excellent working relationship with the Ministry of Justice to progress those recommendations.
Catherine Dixon MCIArb, CEO of Ciarb, said, “We were delighted to see that the new UK Government prioritised arbitration reform in its first King’s speech. This demonstrates the importance placed on private dispute resolution and its benefits to global business and as an enabler to access to justice. I thank our members, and colleagues in the UK Ministry of Justice and Law Commission for their ongoing work in finalising these important but measured reforms.”
[2] After logging in to your MyCiarb account, go to ‘Member Resources’, then ‘Publications’ and choose The Resolver to read ‘Countering Corruption: The ADR community’s line on preventing corruption’.
