The UK Government has confirmed that the Arbitration Act 2025 (the "2025 Act") will come into force on 1 August 2025 after receiving Royal Assent on 24 February 2025.1
The 2025 Act seeks to preserve the status of London as a leading destination (or seat) for international arbitration, reflects international best practice and clarifies certain areas of the Arbitration Act 1996 (the 1996 Act). While the 2025 Act introduces significant changes, the 1996 Act will remain in force as the primary source of arbitration law in England & Wales.
We discussed the scope of the reform brought about through the 2025 Act in our earlier article where we describe the 2025 Act as evolutionary, not revolutionary. While the 2025 Act does not seek to overhaul arbitration in England & Wales, it introduces important key changes, including changes relating to:
- Governing law of an arbitration agreement (as opposed to the substantive contract), which will be the law of the seat, where parties have not agreed otherwise;
- Duty of disclosure, namely that arbitrators have a continuing duty to disclose any circumstances which might reasonably give rise to justifiable doubts as to their impartiality; and
- Increased arbitrator immunity, where an arbitrator should incur no liability for resigning (unless it is shown that such resignation was unreasonable).
In addition to the 1996 Act (as amended by the 2025 Act) amendments to other legislation, such as the Arbitration (Scotland) Act 2010 or indeed the Arbitration (International Investment Disputes) Act 1996 may need to be considered.
For an in depth review of the changes introduced by the 2025 Act, take a look at our blog about the 2025 Act receiving Royal Assent.
Footnote
1 The Arbitration Act 2025 (Commencement) Regulations 2025
Read the original article on GowlingWLG.com
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
