Changes to English arbitration law will require parties to reconsider the provisions of their arbitration agreements and will also provide a mechanism for the summary disposal of disputes

Whilst not imposing ‘root and branch reform’ important changes have been made by recent amendments to English arbitration law by the Arbitration Act 2025 (AA 2025), the aims of which are to simplify certain aspects of arbitration procedure making it more efficient and thereby maintaining London’s position as a forum of choice for international arbitration disputes. In this article, we consider the main changes made by the AA 2025 and as a result, why parties will need to check their arbitration agreements to ensure that their governing law provisions are clearly provided for. 

The AA 2025 makes a number of important amendments to the Arbitration Act 1996 (AA 1996) which will affect all users of arbitration. These amendments will be discussed in further detail below and include, amongst others, changes to the governing law of arbitration agreements, an arbitrator's duty of disclosure and immunity, the tribunal’s power to dispose summarily of a claim, court enforcement of orders made by emergency arbitrators, court orders against third parties in aid of arbitration and challenges to jurisdiction under s.67 of the AA 1996.  Several of the changes are mandatory, as opposed to the choice of the parties, and where this is the case, we will highlight this. 

Commencement of the new provisions

The AA 2025 received royal assent on 24 February 2025 and will amend existing provisions of the AA 1996 when the relevant statutory instrument is made bringing it into force. This date has yet to be determined. 

The AA 2025 amendments will only apply to arbitrations commenced on or following the day that the relevant section comes into force. As stated above, this is yet to be determined but means that parties to an existing arbitration agreement but where the arbitration itself has not yet commenced, may be subject to the changes.  Likewise, where the amendment relates to an application made before a court, the amendment will apply only to those court proceedings commenced once the AA 2025 is in force   and the arbitration also started after that date. We therefore advise parties to reconsider their current arrangements, in addition to future agreements, in light of the amendments and seek advise where appropriate. 

Key changes

Governing Law of arbitration agreements

The AA 2025 introduces a new default rule (as new section 6A of the AA 1996) that an arbitration agreement shall be governed by the law of the seat of arbitration in the absence of an express agreement to the contrary. This rule will apply irrespective of where the arbitration is seated. 

In addition, section 6A makes it clear that if the parties have stipulated a law governing the main law of the contract, but not the law governing the arbitration agreement, the new rule in the AA 2025 will apply and in that scenario the law of the arbitration agreement will be the law of the seat of the arbitration. This means that the law of the arbitration agreement will not always follow the governing law of the contract itself.

Section 6A, however disapplies the above rule in relation to an agreement to arbitrate contained in a treaty, or in legislation of a country or territory outside the United Kingdom. This means that the rule will not apply to investment treaty…