The UK Arbitration Act 2025 brings targeted updates to the arbitration laws of England and Wales, to modernise the legal framework for resolving commercial disputes, making arbitration more efficient, transparent, and aligned with global standards.
While some parts of the Act are already in force, others will come into effect gradually. That means now is a good time for businesses to take stock and assess what these changes mean for their contracts and arbitration agreements.
From clarified rules on governing law, to formal recognition of emergency arbitrators and the introduction of summary dismissal, the new rules are designed to speed up and simplify the arbitration process. But with that comes the need to review older contracts, many of which may no longer reflect the current legal position.
This article, written by our Litigation and Disputes Resolution Solicitor, Michal Kampa, outlines what’s changed, why it matters, and the practical steps businesses should take next.
What is the UK Arbitration Act 2025 and why has it been introduced?
The Arbitration Act 2025 updates and refines the Arbitration Act 1996, bringing it into line with the realities of modern arbitration practice and recent developments in case law. Over time, areas such as the governing law of arbitration clauses and the powers of emergency arbitrators had become less clear, creating unnecessary complications.
To address this, the new Act has been introduced to:
- Clarify which law governs arbitration agreements
- Formally recognise emergency arbitrators
- Introduce a statutory procedure for summary dismissal of weak claims
- Codify arbitrators’ duty to disclose conflicts of interest
- Reinforce the role of courts in supporting arbitration without undermining the tribunal’s authority
Together, these reforms aim to ensure that England and Wales remain a leading hub for UK arbitration and international dispute resolution.
How does the Arbitration Act 2025 update existing arbitration laws in England and Wales?
The Act brings several important changes to the way arbitration is handled:
- Governing law of arbitration clauses: If the contract doesn’t specify which law governs the arbitration clause, the default will now be the law of the seat – typically England and Wales. This helps avoid disputes in cross-border agreements.
- Ongoing duty of disclosure: Arbitrators must now disclose any circumstances that might reasonably call their impartiality into question – not just at the start, but throughout the proceedings.
- Clearer court support: The Act confirms how and when courts can assist with things like interim measures or jurisdictional issues, while still respecting the independence of the tribunal.
These changes bring clarity and consistency, reducing risk and making arbitration a more attractive option for commercial parties.
What changes does the Arbitration Act 2025 bring for commercial contracts and dispute resolution?
For businesses, the 2025 Act offers practical tools to help resolve disputes more effectively:
- Summary dismissal (also called summary disposal): Tribunals now have a clear process for dismissing claims or defences that have no real chance of success. That means fewer delays, and reduced costs.
- Recognition of emergency arbitrators: Interim decisions can now be made before the main tribunal is in place – and those decisions are enforceable in the English courts. This makes arbitration a more responsive option when urgent issues arise.
- Contract reviews encouraged: If you haven’t reviewed your arbitration clauses recently, now is the time. Businesses should check their contracts allow for these updated procedures.
In short, these reforms are designed to make arbitration faster, clearer, and more commercially effective.
How does the UK Arbitration Act 2025 affect arbitration agreements in business contracts?
If your business relies on arbitration clauses – particularly in commercial contracts – the new Act may affect how those clauses operate.
A few key things to be aware of:
- Implied governing law: If the clause doesn’t specify a governing law, it will now be interpreted according to the law of the seat. That’s usually England and Wales, but this might not be what the parties originally intended.
- Procedural clarity: If you want to use tools like emergency relief or summary dismissal, your clause should explicitly allow for it – either directly or by adopting institutional rules that do.
In many cases, contracts drafted before these changes may not reflect the new standards. Reviewing your arbitration agreements now can save time, cost, and stress later on.
Why should businesses review their arbitration agreements under the Arbitration Act 2025?
Even if your contracts haven’t caused any issues so far, changes under the new Act mean some clauses could now be problematic. For example:
- Clauses that are silent on governing law could lead to delays or uncertainty.
- Older agreements might not support the use of emergency arbitrators or summary dismissal.
- Contracts using bespoke or ad hoc arbitration procedures could now fall out of step with the law.
A legal review can highlight these issues early and help you update your agreements to align with the new regime. It’s a practical step that can offer real peace of mind.
What is summary dismissal in arbitration, and how is it addressed in the new Arbitration Act?
Summary dismissal (also known as summary disposal) allows a tribunal to deal with weak claims quickly, without the need for a full hearing.
Here’s how it works:
- One party applies to have a claim or defence dismissed.
- The other party gets a chance to respond.
- If the case has no real prospect of success, the tribunal can dismiss it early.
It’s a sensible way to cut through unnecessary arguments and focus on the core issues. For commercial parties, it means fewer delays and lower costs – exactly what arbitration is meant to deliver.
How are emergency arbitrators recognised under the UK Arbitration Act 2025?
The Act now gives formal legal status to emergency arbitrators – temporary arbitrators appointed quickly to deal with urgent matters before the main tribunal is formed.
They can grant:
- Freezing injunctions
- Asset preservation orders
- Confidentiality protections and other interim relief
These decisions are now enforceable in English courts, giving businesses a reliable route to fast, legally binding action without heading straight to litigation. It’s a useful option for any business facing urgent risk in a contractual dispute.
How do the LCIA Rules align with the Arbitration Act 2025?
The LCIA Rules, widely used in international arbitration, already incorporate many of the tools the new Act has now confirmed in law:
- Emergency arbitrators
- Early dismissal procedures
- Disclosure duties for arbitrators
If your contracts already use the LCIA Rules, you’re likely well-placed under the new legislation. Even so, it’s still worth checking that your clauses are clearly drafted to support the procedures you want to use.
What steps should businesses take now?
With parts of the Arbitration Act 2025 already in effect, now is the time to:
✅ Review existing contracts – Make sure your arbitration clauses clearly state the governing law and allow for summary dismissal and emergency relief.
✅ Update your standard terms – Align your boilerplate clauses with the new rules, especially if you regularly contract under English law.
✅ Get legal advice on transitional provisions – Not all changes apply straight away. Understanding which provisions are in force (and which are still pending) can help you manage risk and avoid surprises.
Taking these steps now will help you stay compliant, protect your business interests, and make the most of the new arbitration landscape.
How can Scott Bailey LLP support your business with arbitration and dispute resolution?
At Scott Bailey LLP, we regularly help businesses navigate the legal and commercial implications of the Arbitration Act 2025. Whether you’re updating contracts, entering a new venture, or facing a potential dispute, we provide practical, tailored advice to keep you protected.
Our expert litigation and dispute resolution solicitors offer:
- Contract and clause reviews – to make sure your agreements reflect current law and best practice
- Bespoke drafting support – for contracts that need clear, robust dispute resolution provisions
- Strategic advice – on how the changes affect your business and what to do next
Based in the New Forest and working with clients across the South Coast and beyond, we combine legal expertise with commercial understanding to help you stay one step ahead.
