On 24 February 2025 the Arbitration Act (‘the Act’) received Royal Assent. The Act will come into force over the coming months, on a date selected by the Secretary of State.

It shall apply to all arbitrations commenced after that date and seated in England, Wales or Northern Ireland.

The Act introduces a number of key reforms to the Arbitration Act 1996 with the various aims of enhancing fairness and efficiency of arbitration, attracting more international businesses to the UK and generating economic growth.

The Act implements Law Commission recommendations for reform to the existing arbitral framework. Its drafting was scrutinized by arbitration experts to ensure it was fit for purpose and it enjoyed cross-party support in both Houses of Parliament.

The main reforms introduced by the Act include:

1. Providing a more predictable outcome to determining the governing law applicable to arbitration agreements which shall now be the law of the seat of the arbitration, unless the parties agree otherwise.
2. Creating a statutory duty of disclosure requiring arbitrators to disclose circumstances which would or might give rise to doubts as to their impartiality.
3. Providing for summary disposal of a reference if a party’s case has no real prospect of success, akin to the Court’s summary judgment powers.
4. Providing immunity for arbitrators for acts or omissions committed in the exercise of their duties, unless committed in bad faith.
5. Amending the procedures for jurisdictional challenges pursuant to section 67 of the 1996 Arbitration Act by disallowing a full rehearing of a matter before the Courts (with the admission of new evidence and/or arguments) and a second bite at the cherry.
6. Extending the powers of the court in support of arbitral proceedings (section 44 of the 1996 Arbitration Act) by permitting orders against third parties and providing emergency arbitrators with further powers, so as to encourage greater confidence in emergency arbitration procedures.

The changes will no doubt introduce greater certainty, efficiency and support for UK arbitrations and are welcome news for shipping practitioners and those in the maritime industry.