The English Arbitration Act 2025 marks a significant development in arbitration law in England and Wales. Long awaited, this reform aims to modernize a law perceived as insufficiently liberal and to improve London’s position among the world’s leading international arbitration centers.
The amendments are primarily technical in nature: the law applicable to arbitration agreements (codification of the Enka v Chubb ([2020] UKSC 38) case law, except in relation to investment matters); disclosure obligations incumbent on arbitrators (following on from the Halliburton v Chubb decision); extension of arbitrators’ immunity.
On a more substantive level, the UK legislature has also enshrined the practice of summary dismissal, allowing arbitrators to dismiss manifestly unfounded claims at an early stage. Another notable innovation is that the English Arbitration Act 2025 authorizes the emergency arbitrator to issue a peremptory order imposing a time limit for compliance with its decision. It also provides for the possibility of applying to the English court to order the recalcitrant party to comply with the emergency arbitrator’s order.
The role of the annulment judge is also redefined: where a party has already raised a plea of lack of jurisdiction before the arbitral tribunal, and the latter has ruled on its own jurisdiction, the court hearing an application for annulment may only review the issue in its entirety in strictly limited circumstances.
Finally, the reform settles a debate in case law by explicitly authorizing English courts to grant interim or protective measures against third parties in support of arbitration proceedings.
This reform is part of a clear strategy to make London a more competitive arbitration center than it currently is.
Important note: the English Arbitration Act 2025 received Royal Assent on February 24, 2025, marking its official adoption. However, its provisions will come into force at a later date, to be determined by regulations made by the Secretary of State. To date, this date has not yet been determined.
The amendments introduced by this Act will only apply to arbitration proceedings commenced after its official entry into force. Arbitrations in progress or court proceedings related to arbitrations commenced before that date will continue to be governed by the provisions of the Arbitration Act 1996.
Excerpts from the LCIA’s official website on The English Arbitration Act 2025
