New Arbitration Act set to transform dispute resolution

July 31st 2025 marks a significant milestone in the realm of legal dispute resolution as the long-awaited Arbitration Act 2025 officially comes into force for England and Wales. Designed to simplify the arbitration process, this new legislation is set to make arbitration a more attractive option for resolving commercial disputes. Partner Damian Honey and Knowledge Counsel Nicola Gare of HFW highlight several key changes that this new Act brings to the table, especially for firms contemplating arbitration as a viable dispute resolution method.

The Arbitration Act 2025 promises to deliver a faster, clearer, and more user-friendly arbitration experience. Damian Honey stated "Today, the long-awaited Arbitration Act 2025 comes into force for England & Wales, tailored to make arbitration simpler and a more attractive option for resolving commercial disputes." This means that legal professionals and businesses can expect fewer delays and more predictable outcomes while feeling greater confidence in choosing England and Wales as their arbitration venue. This is particularly crucial, given the increasing popularity of alternative jurisdictions such as Singapore, Hong Kong, and Dubai for such matters.

One of the most significant elements of the new Act is the introduction of simpler rules regarding the governing law of arbitration agreements. This change stipulates that the applicable law will now be determined by the location of the arbitration unless stated otherwise, making the process less complicated and more straightforward. Furthermore, arbitrators are now required to openly disclose any factors that might impact their impartiality, thus fostering trust in the arbitration process itself.

Another important advantage of the Arbitration Act 2025 is its provision for quicker resolutions of weak claims, helping to reduce both time and costs associated with arbitration. This clarity and efficiency are expected to attract more qualified professionals to the role of arbitrators, as they are afforded better legal protections when stepping down or being removed from cases. The new legislation also addresses a growing trend where challenges to an arbitrator’s authority have become commonplace; with new limitations in place, this will help mitigate the risk of prolonged court disputes.

In addition, the Act empowers courts to assist in urgent matters, even involving third parties, which adds another layer of support for users who find themselves in pressing situations. This comprehensive set of changes marks the Arbitration Act 2025 as a welcome update to the arbitration framework in England and Wales, propelling it towards a more efficient and appealing option for navigating cross-border commercial disputes.