The <span class="news-text_italic-underline">Arbitration Act 2025</span> officially received Royal Assent on 24 February 2025, marking the completion of its passage through Parliament. This new Act closely follows the recommendations made by the Law Commission in response to a government request to review the <span class="news-text_italic-underline">Arbitration Act 1996</span> and ensure its continued relevance in promoting the UK as a leading hub for international commercial arbitration.
The Law Commission's review, following a consultation period, culminated in the publication of its recommendations in September 2023. These proposed amendments aim to enhance the arbitration framework, ensuring it remains effective and competitive on the global stage.
Sir Peter Fraser, Chair of the Law Commission, commented on the significance of the Bill’s passage:
<p class="news-text_emphasize">"The Arbitration Act 2025 marks a pivotal step in advancing the UK’s arbitration landscape. By enacting the Law Commission’s recommendations, we are not only strengthening the arbitration framework but also reaffirming the UK’s status as the premier jurisdiction for commercial arbitration. This will ensure the UK remains a top destination for international arbitration."</p>
Bar Council’s Response to the New Act
The Bar Council has also expressed its support for the passing of the Arbitration Bill 2025. The updated Act aligns with the Law Commission’s recommendations and brings welcome clarity to the existing framework, further cementing the UK’s position as a global leader in arbitration.
According to the Law Commission, there are over 5,000 domestic and international arbitrations annually in England and Wales, generating £2.5 billion in fees. This underlines the significant economic contribution of arbitration to the British legal system.
Barbara Mills KC, Chair of the Bar Council, highlighted the importance of the new legislation:
<p class="news-text_emphasize">"We welcome the Arbitration Act 2025, which will further enhance the UK’s standing as a leading centre for arbitration. This industry is worth billions to the British economy. In particular, we value the clarity the new Act provides regarding the law applicable to arbitration agreements, which we anticipate will increase the number of disputes arbitrated in England and Wales. Additionally, the Act strengthens the role of courts in supporting arbitration and allows for the summary dismissal of meritless claims, increasing efficiency in arbitral proceedings … The modernisation of the UK’s arbitration framework ensures the country remains competitive in the international arbitration market.”</p>
Further information about the Law Commission’s arbitration law reform project, including their recommendations, can be found on the <a href="https://lawcom.gov.uk/project/review-of-the-arbitration-act-1996/" target="_blank" class="news-text_link">project page</a>.
