The modernisation of the Arbitration Act is set to boost the UK economy by millions while creating new employment opportunities within the legal sector.
Arbitration is a way of settling a dispute without having to go to court. The arbitrator listens to both sides, looks at the evidence you’ve sent in and decides what the outcome should be. In some cases, the arbitrator may choose to have several meetings with you both.
The new law will reinforce Britain’s position as the world’s number one destination for arbitration – building on London’s status as the globally preferred location for these services over competitors like Singapore, Hong Kong and Paris.
This will attract further investment to the UK’s £42.6 billion legal services economy and create highly-skilled jobs, supporting the sector’s existing 384,000 workforce, the Ministry for Justice said in an accompanying statement.
“Businesses around the world already look to the UK as the gold standard in arbitration, and this new law cements our place as the global jurisdiction of choice – competing globally and keeping British companies on top,” said Sarah Sackman (Minister for Courts and Legal Services).
As the largest legal services market in Europe, international arbitration represents a major growth sector for the UK economy. England and Wales handle at least 5,000 domestic and international arbitrations annually, contributing £2.5 billion in fees alone.
From Friday (1 August), arbitrators have the power to dismiss weak cases quickly, preventing businesses from wasting time and money on disputes with no chance of success. The reforms also require arbitrators to declare any potential conflicts of interest upfront, ensuring fairer outcomes for businesses.
Courts have gained new powers to better support the arbitration process, while simplified procedures will cut delays and costs for all parties involved.
The Arbitration Act received Royal Assent in February and has now been fully implemented.
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