Go-To Guide:

• The UK Arbitration Act 2025 took effect on 1 August 2025, bringing into force key updates to the UK arbitration framework, including the following:

–Where parties have not chosen a law for the arbitration agreement, the governing law now defaults to the law of the seat.
 –Tribunals have an express power to summarily dismiss claims or defences that have no real prospect of success.
 –Arbitrators are subject to a statutory, ongoing duty to disclose circumstances that might give rise to justifiable doubts about their impartiality.
 –Courts may now grant support orders under the arbitration regime against third parties, as well as parties to the arbitration.
 –Emergency arbitrators can issue and, where permitted, have their orders enforced, with the same peremptory authority that was previously reserved for fully constituted tribunals.

The substantive provisions of the Arbitration Act 2025 (the 2025 Act) took effect on 1 August 2025, pursuant to the Arbitration Act 2025 (Commencement) Regulations 2025. Marking an anticipated update to the UK’s arbitration framework, the reforms the 2025 Act introduces apply to all arbitration and arbitration-related court proceedings commenced on or after 1 August 2025.

Background

As previously reported, the Arbitration Act 2025, which received Royal Assent on 24 February 2025, introduced targeted reforms to update the Arbitration Act 1996 in order to reinforce London’s status as one of the world’s leading international arbitration seats.

The Act follows an extensive review by the Law Commission, including consultations and a final report with proposed amendments. The Greenberg Traurig London arbitration team contributed feedback, particularly supporting the introduction of summary disposal powers while advocating for flexible procedures tailored to individual cases. This approach was incorporated into the 2025 Act, reflecting practical considerations for arbitration practitioners, as acknowledged in the Law Commission’s recommendations.

Arbitration Act 2025’s Key Changes

This GT Alert summarises five changes that the 2025 Act introduces, all of which are now fully in force (as of 1 August 2025): 

1. Governing Law of Arbitration Agreements: The 2025 Act implements a clear statutory rule for determining the governing law of an arbitration agreement. If the parties have not expressly agreed otherwise, the governing law will default to the law of the arbitration seat. This rule addresses a common issue in English-seated arbitrations where the main contract is governed by a jurisdiction less favorable to arbitration, and no specific choice of law exists for the arbitration agreement. By doing so, the new rule circumvents the previous common law position the Supreme Court established in Enka Insaat Ve Sanayi AS v OOO Insurance Company Chubb [2020] UKSC 38. There is a limited exception to the statutory rule’s application for certain types of investment treaty arbitration clauses.
 

2. Summary Disposal Powers: Arbitrators now have explicit authority to summarily dismiss claims or defences that lack a real prospect of success. Upon application by either party - and unless the parties have agreed to exclude this power - the tribunal may issue a summary award disposing of a claim, defence, or specific issue. The 2025 Act does not mandate a detailed procedure, requiring only that all parties are given a reasonable opportunity to present their case, allowing for flexibility in how this power is applied. These new summary disposal provisions aim to bring arbitration processes closer to those of the English courts, enabling tribunals to efficiently weed out claims or defences without merit early on, avoiding the need for full, costly, and lengthy hearings.
 3. Arbitrators’ Duty of Disclosure: There is now a codified statutory obligation requiring arbitrators to continuously disclose any circumstances that may reasonably give rise to justifiable doubts about their impartiality. This duty mandates that arbitrators disclose not only what they are actually aware of, but also what they reasonably should have known concerning potential conflicts of interest. While the 1996 Act did not previously impose a statutory disclosure requirement, the Supreme Court had recognised this duty under common law (Halliburton v Chubb [2020] UKSC 48).
 4.Court Powers in Support of Arbitration: The court’s power under section 44 of the 1996 Act to issue orders supporting arbitration proceedings – such as freezing orders or orders to preserve evidence – now extend to third parties, not just the parties to arbitration. This change aims to strengthen the court’s ability to safeguard the effectiveness of the arbitral process by enabling it to target individuals or entities connected to the arbitration. Such extended powers may be particularly useful in cases involving fraud, asset dissipation, or where third parties like banks or suppliers possess critical evidence.
 5.Emergency Arbitrators: Parties are now able to enforce orders made by emergency arbitrators when the applicable arbitration rules permit their appointment. If a party fails to comply with an emergency arbitrator’s order or directions, the emergency arbitrator may issue and enforce a binding peremptory order with the same authority as a fully constituted tribunal. This development provides a clearer framework for interim relief and grants emergency arbitrators enforcement powers previously reserved for fully constituted tribunals. 

Takeaways

The changes the 2025 Act introduces aim to modernise England’s arbitration framework, addressing evolving stakeholders’ needs and aligning with global best practices. Therefore, parties commencing arbitration or related court proceedings from 1 August 2025 onwards must navigate and understand this updated legal framework to ensure their dispute resolution strategies remain effective under the new regime.

However, it is important to note that the reforms introduced by the 2025 Act will not affect (i) arbitration proceedings initiated before 1 August 2025, (ii) court proceedings connected to arbitrations started before that date, or (iii) any other court proceedings commenced prior to 1 August 2025.