- New Bill to solidify London’s reputation as best location in
the world to resolve legal disputes
- Simpler, faster, more efficient processes a boon to
individuals and businesses
- Arbitration worth more than £2.5 billion to the British
economy each year
The Arbitration Bill will benefit businesses and individuals
around the world who look to the UK as the best place to resolve
disputes from family law and rent reviews to international
commercial contracts and claims by foreign investors made against
entire countries.
Modernising the framework for arbitration in this country for the
first time in 26 years – making it quicker, cheaper and more
efficient –will cement the position of this high-value sector in
the face of growing competition from other centres such as
Singapore and Paris.
With arbitrations in England and Wales worth £2.5 billion to the
British economy each year in fees alone, the Bill will help the
UK’s world-leading legal services sector to continue to
flourish.
In supporting people and businesses to settle disputes without
having to go to court, British arbitrators will save them time
and money.
Justice Minister, , said:
These much-needed changes will modernise the role of arbitrators
and further cement our position as a world leader in the
field.
The UK is a globally-respected hub for legal services, with
English and Welsh law the bedrock for the majority of
international disputes, and the Arbitration Bill will ensure
businesses from around the world continue to come here to resolve
their disagreements.
Other countries have already modernised their laws and as a
result, the government asked the Law Commission in 2021 to review
the Arbitration Act to ensure the UK remains ahead of the curve
when it comes to dispute resolution. They consulted extensively
before making recommendations to the government which were backed
the arbitration sector.
Accepting the Law Commission’s recommendations in full means
arbitrations in this country will remain fair and efficient and
will cement the UK’s status and economic benefit as a world
leader.
Changes include:
- Strengthening the courts’ powers to support emergency
arbitration so time-sensitive decisions can be made more easily,
such as the preservation of evidence to avoid bad actors
destroying key materials.
- Providing more clarity on the law of arbitration.
- Simplifying procedures to reduce delays and costs for
clients.
- Protecting arbitrators from unreasonable lawsuits - for
example if the arbitrator needs to resign from the case with good
reason, to ensure they can make impartial decisions.
Catherine Dixon, CEO of Chartered Institute of Arbitrators, said:
We worked very closely with the UK Law Commission and other
officials during its review of the Arbitration Act 1996. As the
leading professional body for dispute resolvers, we are delighted
that the majority of our recommendations were adopted in the Law
Commission’s report and, subsequently, the Bill.
We are pleased that the UK Government has included legislative
reform of the Arbitration Act as a key priority in this
Parliament, recognising the importance of arbitration to the UK
and globally, as the Act forms the basis of legislation in many
other jurisdictions.
Notes to editors
This Bill will:
- Empower arbitrators to expedite decisions on issues that have
no real prospect of success to make arbitration more
efficient.
- Introduce a duty on arbitrators to tell clients any
circumstances which could cast reasonable doubt on their
impartiality in deciding an outcome of a dispute.
- Make clearer which law underpins arbitration agreements so
arbitrations which happen in England, Wales, or Northern Ireland
are supported by the relevant UK law.
- Empower the court to make orders supporting the actions of
emergency arbitrators to enhance their effectiveness, and make
orders in support of arbitral proceedings against third parties
(those not involved in the proceedings) to for example preserve
evidence or take witness evidence.
- Extend arbitrator immunity against liability for resignations
and the costs of the application to court for their removal, to
support arbitrators to make impartial decisions.
- Simplify court procedures related to arbitration to increase
clarity as well as reduce delays and costs for clients.
