Arbitration Act 2025: What the Reforms Really Mean

The Government says the Arbitration Act 2025 will strengthen Britain’s position as the world’s number one destination for arbitration. Big words. And to be fair, arbitration in London is already a heavyweight, handling thousands of domestic and international disputes each year.

So, what’s new?

From today, arbitrators can dismiss hopeless cases earlier. That means if a claim has no real chance, it can be thrown out before everyone racks up eye-watering fees. Arbitrators now also have to declare potential conflicts of interest upfront. That should mean fewer surprises later, and a bit more confidence for businesses entering the process. Courts have been given stronger powers to support arbitration, and some of the procedures have been tidied up to make things faster and cheaper.

On paper, all of this is good. Speed, cost, efficiency. Who wouldn’t want that?

International Arbitration is the only show in town with enforcement across over a hundred jurisdictions through the New York Convention. And if you can combine it with mediation, the reach is impressive.

But let’s keep it grounded. Arbitration is still arbitration. It looks a lot like litigation, just without the wigs and gowns, and with a specialist arbitrator who isn’t working for charity. It’s still adversarial. It still costs. And while these reforms help, they don’t make arbitration suddenly quick, cheap, and easy.

That’s why, in practice, many businesses look at the alternatives. Mediation, for example, gives the parties control, flexibility, and the chance to settle on terms that suit them, not just the black and white outcome an arbitrator provides. And it can be arranged far quicker, often within weeks and at a fraction of the cost.

The Arbitration Act 2025 matters because it keeps the UK competitive and maintains London’s edge in the global legal market. That’s good for the economy, and good for the profession. But if you’re a business caught in the middle of a dispute, what you’ll care about is how much time, money, and stress it’s going to cost you.

And here’s the honest truth.

At the end of the day, arbitration isn’t cheap. It’s private litigation, stripped of wigs, run by experts who, quite rightly, don’t work for free. If you’re in arbitration and you can’t get the whole way - if it drags, if it drains, then don’t be afraid to switch into mediation. It may not be the shiny new Act making headlines, but it’s often the lifeline that gets deals done.

Christopher J Cox

Solicitor and Registered Mediator with the Civil Mediation Council