Arbitration practitioners have widely welcomed the regime ushered in by the Arbitration Act 2025, which comes into force today. The measure, which received Royal Assent in February, updates the Arbitration Act 1996. It introduces a default position about the choice of applicable law and requires arbitrators to declare upfront any potential conflicts of interest. It also improves arbitrators’ protection from legal risks and creates a summary dismissal procedure for hopeless cases.
Courts minister Sarah Sackman said the new regime ’will attract further investment to the UK’s £42.6 billion legal services economy and create highly-skilled jobs, supporting the sector’s existing 384,000 workforce’. England and Wales handle at least 5,000 domestic and international arbitrations annually, generating £2.5 bn in fees alone, the government said.
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