On 18 July 2024, the Arbitration Bill (the “<span class="news-text_medium">Bill</span>”), designed to modernise the Arbitration Act 1996, was reintroduced to Parliament following its announcement in the <a href="https://assets.publishing.service.gov.uk/media/6697f5c10808eaf43b50d18e/The_King_s_Speech_2024_background_briefing_notes.pdf" target="_blank" class="news-text_link">King's Speech</a> the day before. The Bill, presented by Justice Minister Lord Ponsonby, incorporates measures from previous legislation lost during the pre-election period in May 2024 and builds upon last year’s Law Commission recommendations.
The updated Bill aims to enhance the UK’s arbitration laws, ensuring London remains a leading global hub for arbitration. It seeks to make arbitration quicker, more cost-effective and more efficient. A provision expected to reduce nuisance claims and improve overall arbitration efficiency is Section 39A, granting tribunals the power to issue summary awards where a party has no realistic prospects of success.
Additionally, the Bill introduces the arbitrator’s duty to disclose relevant circumstances which could raise doubts as to their impartiality, further ensuring the integrity of the arbitration process. According to the UK government, these changes will bolster the UK’s position in the global dispute resolution market, contributing at least £2.5 billion annually to the British economy.
Lord Ponsonby emphasised the government’s commitment to maintaining the UK’s leadership in dispute resolution and enhancing the efficiency of legal processes for businesses and individuals alike.
Bar Chair Sam Townend KC welcomed the bill, noting it supports London’s reputation as a premier centre for international arbitration and contributes positively to the country's export income. The Bill reached its second reading in the House of Lords on 31 July 2024.
The revised Bill, introduced to Parliament on 18 July 2024, can be found <a href="https://bills.parliament.uk/bills/3733" target="_blank" class="news-text_link">here</a>.
