The UK Arbitration Act 2025: Key Changes and Innovations

In 2025, substantial amendments were made to the Arbitration Act 1996, making it more "modern" for both domestic and international commercial arbitration. The amendments provide legal clarity on a number of key issues and strengthen the already robust framework governing arbitration proceedings in England, Wales, and Northern Ireland.

One of the changes is the addition of a new Section 6A. Under Section 6A(1), unless the parties agree otherwise, the arbitration agreement is governed by the law of the seat of arbitration. As expressly stated in this section, this means that, absent an agreement of the parties to the contrary, the law applicable to the underlying contract does not automatically extend to the arbitration agreement.

Section 23A introduces an arbitrator's duty to disclose circumstances that might reasonably give rise to justifiable doubts as to their impartiality, both before and after appointment. Before appointment, such information must be disclosed to the person considering the candidacy; after appointment — to the parties to the proceedings. This provision is included in Schedule 1 (mandatory provisions), meaning it cannot be excluded by agreement of the parties. Its introduction is aimed at reducing the number of challenges to arbitral awards on the ground of "doubts as to the arbitrator's impartiality."

Under the amendments to Sections 24(5A) and 29(1), arbitrator immunity has been significantly strengthened. These provisions establish that, in the event of an arbitrator's resignation or an application to the court for their removal, the arbitrator incurs no liability, except in cases of bad faith or manifestly unreasonable conduct.

Furthermore, the Kompetenz-Kompetenz principle has been reinforced: under the new Section 32(1A), where an application on the arbitral tribunal's jurisdiction is made to the court, the court may not consider it if the tribunal itself has already ruled on the matter.

In addition, a new Section 41A on emergency arbitrators has been introduced. Their role is limited to considering applications for urgent interim measures before the constitution of the permanent arbitral tribunal, subject to the parties' consent. If a party (or one of the parties) fails to comply with the obligations under the emergency arbitrator's decision, the arbitrator may issue a peremptory order, which is binding and enforceable with the support of state courts. This section expressly provides that decisions of emergency arbitrators are enforceable in the same manner as awards rendered by a fully constituted arbitral tribunal.

It should be noted that the provisions discussed cover only part of the amendments. The amended Act entered into force on 1 August 2025.