The Arbitration Act 2025 gives arbitrators the power to dismiss weak cases quickly, preventing businesses from wasting time and money on disputes with no chance of success.

The reforms also require arbitrators to declare any potential conflicts of interest upfront, in a bid to ensure fairer outcomes for businesses.

Courts have been given new powers to better support the arbitration process, and simplified procedures have been introduced to cut delays and costs for all parties involved.

Sarah Sackman KC MP, the UK government minister for courts and legal services, said: “Businesses around the world already look to the UK as the gold standard in arbitration, and this new law cements our place as the global jurisdiction of choice — competing globally and keeping British companies on top.

“As part of our plan for change, we will continue to drive new business straight into the UK to boost jobs and support economic growth.”

The UK is the largest legal services market in Europe, with England and Wales handling at least 5,000 domestic and international arbitrations annually, contributing £2.5 billion to the economy in fees alone.  

Cristen Bauer, director of external affairs at the Chartered Institute of Arbitrators (CIArb), said: “As the leading professional body globally for dispute resolvers, we are delighted to see the Arbitration Act 2025 come into force.

“We commend the government’s commitment to modernise the Arbitration Act and to engage in a collaborative reform process with stakeholders from across the dispute resolution ecosystem.

“CIArb is proud to have contributed to this important reform and stands ready to support the global arbitration community in harnessing the full potential of this new framework.

“This milestone not only strengthens arbitration in England, Wales, and Northern Ireland, but also reinforces global efforts to uphold high standards of fairness, efficiency, and integrity across the profession.”