Businesses will benefit from faster and cheaper dispute resolution as major reforms to arbitration law come into effect today.
- New law comes into force today to strengthen UK's world-leading status in arbitration
- Businesses can now settle disputes faster and at less cost
- Part of Government's Plan for Change to drive new business straight into £42.6 billion legal sector
The modernisation of the Arbitration Act is set to boost the UK economy by millions while creating new employment opportunities within the legal sector.
The new law will reinforce Britain's position as the world's number one destination for arbitration - building on London's status as the globally preferred location for these services over competitors like Singapore, Hong Kong and Paris.
This will attract further investment to the UK's £42.6 billion legal services economy and create highly-skilled jobs, supporting the sector's existing 384,000 workforce.
Minister for Courts and Legal Services, Sarah Sackman KC MP, 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.
As the largest legal services market in Europe, international arbitration represents a major growth sector for the UK economy. England and Wales handle at least 5,000 domestic and international arbitrations annually, contributing £2.5 billion in fees alone.
From today, arbitrators have 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, ensuring fairer outcomes for businesses.
Courts have gained new powers to better support the arbitration process, while simplified procedures will cut delays and costs for all parties involved.
The Arbitration Act received Royal Assent in February and has now been fully implemented.
Cristen Bauer, Director of External Affairs, Chartered Institute of Arbitrators
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.
