The Arbitration Act 2025 Finally Becomes Law

Practitioners and stakeholders in the arbitration community have welcomed the long-awaited Arbitration Act 2025, which has now received Royal Assent, marking the most significant update to English arbitration law in nearly three decades. This milestone concludes a years-long process initiated by the Law Commission's 2023 recommendations and underscores the UK government's commitment to maintaining London as an arbitration hub.

The Legislative Journey

The Conservative government originally introduced a version of the bill in late 2023. As we noted in 2024, the bill's passage was derailed by the snap general election in May of that year. The new Labour government, under Prime Minister Sir Keir Starmer, revived the reforms, with Lord Ponsonby sponsoring the bill in the House of Lords.