The Arbitration Act 2025 Receives Royal Assent

On 24 February 2025, after years of work and public consultations spearheaded by the Law Commission, the Arbitration Act 2025 (the "2025 Act") received Royal Assent. The new law, adopted to "turbocharge UK's position as the world-leader in arbitration",¹ amends the Arbitration Act 1996 (the "1996 Act"). Once brought into force (date to be confirmed by the UK Government), its amendments will apply to all future arbitrations with a seat in England and Wales and to all arbitral awards made after that date.

Arbitration is already the dispute resolution method of choice for many individuals and companies, and its popularity is growing as a means to resolve disputes outside of traditional court processes and allows parties to litigate disputes on their terms. The UK Government estimates that at least 5,000 arbitrations in England and Wales take place annually – contributing at least £2.5 billion to the UK economy annually in fees alone, and to making the UK the largest