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Legal Updates In The UK

July 1, 2025

Substantive Reforms to the English Arbitration Act 1996 Set to Take Effect from 1 August 2025

UK Arbitration Act 2025 reforms take effect 1 Aug 2025, modernising English arbitration and enhancing efficiency for domestic and international disputes.

On 16 July 2025, the UK government published the <a href="https://www.legislation.gov.uk/uksi/2025/905/made" target="_blank" class="news-text_link">Arbitration Act 2025 (Commencement) Regulations 2025 (SI 2025/905)</a>, which will bring significant reforms to the <span class="news-text_italic-underline">Arbitration Act 1996</span> (“<span class="news-text_medium">AA 1996</span>”). On 17 July 2025, the UK government confirmed that the substantive provisions of the <span class="news-text_italic-underline">Arbitration Act 2025</span> (“<span class="news-text_medium">AA 2025</span>”) will enter into force on 1 August 2025. These provisions, which implement the recommendations of the Law Commission’s review of English arbitration law, will bring significant changes to the AA 1996. The reforms aim to modernise the arbitration framework, enhance efficiency and ensure that the UK remains a leading jurisdiction for international arbitration.

The UK’s Minister for Legal Services, Sarah Sackman KC MP, wrote to various arbitration institutions and other stakeholders on 17 July 2025, confirming that the regulations under section 17(2) of the AA 2025 will bring the substantive provisions (sections 1-15) into force. The AA 2025, which received Royal Assent on 24 February 2025, includes several key amendments to the AA 1996, addressing areas such as:

  • The law governing arbitration agreements
  • Arbitrators' duties of disclosure, immunity and powers of summary dismissal
  • Court enforcement of emergency arbitrators' orders and court orders against third parties in aid of arbitration
  • The regime and procedures for challenging the jurisdiction of an arbitral tribunal

The changes introduced by the AA 2025 will apply to arbitrations and arbitration-related court proceedings commenced on or after 1 August 2025. However, they will not affect ongoing proceedings or court cases related to arbitrations that were pending before this date.

The regulations required to implement these provisions, as permitted by section 17(2) of the AA 2025, have not yet been published. Once in force, these provisions will significantly alter the arbitration landscape in the UK, providing greater clarity and efficiency for both domestic and international arbitration participants.

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