The English Arbitration Act 2025: Key Changes Coming into Force on 1 August 2025

The English Arbitration Act 2025 (the ‘Act’) will come into force on 1 August 2025, introducing a number of amendments to the Arbitration Act 1996. 

When do the changes apply?

The amendments will apply to arbitrations and arbitration-related court proceedings commenced on or after 1 August 2025. Importantly, they will not affect court proceedings initiated in respect of arbitrations that were already pending before this date.

What are the key changes?

The changes address several critical areas that have long been the subject of debate and uncertainty. We considered these in detail in our previous article here but in summary:

Governing law of arbitration agreements – Perhaps the most significant development for disputes and commercial lawyers, this significant change introduces a new default rule that arbitration agreements will be governed by the law of the seat of arbitration unless parties expressly agree otherwise. This reverses the Supreme Court's approach in Enka v Chubb and provides much-needed certainty. Crucially, even where parties have specified a governing law for the main contract but not for the arbitration agreement itself, the law of the seat will apply to the arbitration agreement. This means the arbitration agreement and main contract may be governed by different laws—a departure from previous assumptions. The rule preserves party autonomy whilst ensuring more London-seated arbitrations benefit from English law's pro-arbitration approach.

Enhanced arbitrator framework – The Act introduces new provisions on arbitrators' duties of disclosure, strengthens arbitrator immunity, and expands arbitral tribunals' powers of summary dismissal. The introduction of a power of summary dismissal is a bold move as it is an express statutory power for arbitrators to dispose summarily of any claim, defence or jurisdictional objection which has no real prospect of success – the same test as summary judgment under English court proceedings. The provision is non-mandatory, so parties may choose to opt-out or else to replace it with another mechanism, such as the summary mechanism appearing in many institutional arbitration rules which may operate under a different test. The introduction of these provisions is aimed at improving efficiency and reducing tactical challenges.

Strengthened court support – The changes enhance court enforcement of emergency arbitrator orders, expand court powers to make orders against third parties in aid of arbitration, and streamline the regime for challenging arbitral jurisdiction.

Practical steps to take now

It is important that contracting parties consider their current arrangements, in addition to future agreements, in light of the changes and seek advice where appropriate:

• Review and Strengthen Governing Law Provisions - The new default rule makes it essential that parties explicitly address governing law in their arbitration clauses, rather than relying solely on seat selection. Where agreements already contain governing law clauses, parties should ensure the language is unambiguous—vague or unclear provisions may inadvertently trigger the default rule. This review is particularly critical for parties who intended their arbitration agreements to follow the same governing law as their main contracts, as this will no longer be automatic.
• Reassess Seat Selection Strategy - The enhanced importance of seat selection under the new framework requires parties to carefully evaluate whether their chosen seat provides the arbitration-friendly environment they need. This means considering not just the legal framework but also the availability of supportive interim measures such as anti-suit injunctions. For parties with London seats, the changes reinforce the advantages of English arbitration law, but those with other seats should assess whether the new rules affect their strategic calculations.
• Address Summary Disposal Provisions - The non-mandatory nature of the summary disposal mechanism requires active decision-making by parties. Those who favour early disposal of weak claims should consider expressly incorporating the provision into their agreements to signal their intention to use it. 

If you would like to discuss whether your arbitration agreement/s could be affected by the changes enacted by the Act please reach out to the authors of this article or to your usual Bird & Bird disputes contact.