The Arbitration Act 2025 (the AA 2025), which amends the previous arbitration regime under the Arbitration Act 1996 (the AA 1996), received Royal Assent on 24 February 2025.

The AA 2025 introduces a number of refinements to the arbitration regime in England and Wales but the key aspects to note are as follows:

• The changes which the AA 2025 introduces will apply to all arbitral proceedings seated in England and Wales commenced after the Act comes into force (subject to certain transitional provisions). This is irrespective of when the relevant arbitration agreement was entered into and will therefore apply to agreements pre-dating the AA 2025.
• The AA 2025 clarifies the position regarding choice of law. The previous position at common law engaged various issues of contractual interpretation, whereas the AA 2025 provides that the governing law for the arbitration will be determined by its seat (absent express agreement to the contrary). The introduction of this amendment is to be welcomed as it clarifies the position and should reduce potentially costly satellite litigation, such as last year’s judgment in UniCredit Bank GmbH v RusChemAlliance LLC.
• The AA 2025 codifies the common law duty of impartiality for arbitrators, both prior to and after the commencement of arbitral proceedings. As part of this duty, arbitrators are required to disclose circumstances which “might reasonably give rise to justifiable doubts as to the [arbitrator’s] impartiality”. It is notable that this duty of disclosure is slightly wider than under the common law regime and requires arbitrators to disclose circumstances of which they “ought reasonably” to be aware (rather than just circumstances within their actual knowledge).
• Subject to the parties’ agreement to the contrary, arbitrators are given the express power to determine issues with no real prospect of success on a summary basis. This will enable the efficient disposal of unmeritorious claims or defences and has the potential to save substantial time and costs for parties.
• The position of emergency arbitrators is strengthened by providing them with the same means as regular arbitrators to make peremptory orders and give parties permission to apply for a Court order. This should increase confidence in emergency arbitrators and encourage compliance with their decisions.

The AA 2025’s refinements to the arbitral process are designed to streamline arbitral proceedings and ensure that London remains one of the leading forums for arbitrations. Its introduction is to be welcomed.

Authors:

Lizzie Williams, partner – commercial litigation

Dennis Brunner, senior associate – commercial litigation

AUTHORS

Lizzie Williams Partner

Lizzie Williams is a partner and solicitor advocate specialising in commercial litigation.

Lizzie Williams is a partner and solicitor advocate specialising in commercial litigation.

Lizzie has a diverse commercial disputes practice and wide-ranging experience of litigation and arbitration including urgent injunctions, appeals and group litigation. Lizzie acts for a wide range of clients, from high net worth individuals to large corporates, including technology companies, established brands across a broad range of industries, public sector entities and startups.

Lizzie has particular expertise in commercial disputes involving technology companies or relating to innovative technologies or digital transformation. Lizzie advises on disputes involving emerging technologies (including artificial intelligence, digital assets and blockchain) as well as traditional IT disputes (involving hardware, software development, outsourcing and licensing). Lizzie also advises on the management and resetting of distressed digital transformation projects as well as disputes involving technology investments, technology procurement and online payment frauds.

Lizzie is recognised as a "Key Lawyer" in Commercial Litigation and Artificial Intelligence in The Legal 500. Clients say Lizzie “is the best commercial litigator around” and praise her “calm, responsive and very creative approach delivered with considerable expertise”.

Lizzie is the author of the Practical Law practice note AI Disputes and Risk Mitigation and the book A Practical Guide to Smart Contracts and the Law and regularly speaks at industry events.

Lizzie graduated from the University of Cambridge with a First Class degree in Law in 2010 before training and qualifying at Herbert Smith Freehills, where she worked on a variety of complex litigation and arbitration matters for a number of years, before joining Harbottle & Lewis in 2017. Lizzie is a member of the Society for Computers & Law, the Tech Disputes Network, the Cyber Fraud and Asset Recovery Network and the Silicon Valley Arbitration & Mediation Center.