King opens Parliament
Following the UK General Election on 4 July, King Charles III officially opened the new session of parliament today with the King’s Speech – setting out the new Labour government’s legislative plans for this session.
Revival of plans to reform arbitration
Along with draft bills for flagship policies in the areas of railway nationalisation, housebuilding and workers’ rights, the King has also set out his government’s plans to reform the Arbitration Act 1996, which provides a supporting framework for arbitrations seated in England & Wales, and Northern Ireland.
The Arbitration Bill is designed to support more efficient dispute resolution, attract international legal business, and promote UK economic growth by implementing the recommendations of the Law Commission following its review of the Arbitration Act, which has now been in force for 25 years.
An Arbitration Bill based on the Law Commission’s proposals had been making its progress through the previous parliamentary session, but was not far progressed enough to pass before parliament dissolved for the election period. That the reforms have been revived in this session is a welcome, if perhaps unsurprising, development.
Key Proposals
Key reforms in the Arbitration Bill include clarifying the law applicable to arbitration agreements; codifying an arbitrator’s duty to disclose circumstances that might give rise to justifiable doubts about their impartiality; strengthening arbitrator immunity; and empowering arbitrators to make awards on a summary basis where claims have no real prospect of success.
These proposed reforms, while evolutionary rather than revolutionary, will modernise the Arbitration Act and bring it into line with more recently updated legislation in other arbitration centres such as Singapore and Hong Kong, ensuring that this jurisdiction remains an attractive and competitive seat for international arbitration.
Further reading
For more information on the Law Commission’s review, please see our earlier articles:
Arbitration Act 1996 – Evolution not revolution
Arbitration Act 1996 – Law Commission issues second consultation paper
Arbitration Act 1996 – consultation launched on proposed reforms
About the author(s)
Chris supports our dispute resolution lawyers in providing excellent client service by keeping them abreast of current awareness and legal developments in their practice areas. He also writes client insights and articles on topics of importance in the areas of litigation and arbitration.