Arbitration is a form of proceedings where parties agree to have their disputes resolved by an arbitral tribunal (rather than going to court). It is confidential and allows the parties an element of input into the identity of the arbitral tribunal. It is particularly popular in the construction industry for international projects or where confidentially is key.

The Arbitration Act 1996 governs arbitrations in England, Wales and Northern Ireland. One of the drivers behind this piece of legislation was a concern that London was losing out on the lucrative arbitration market to other locations. The Law Commission has been reviewing potential changes to it since January 2022. Consultation papers were published in September 2022 and March 2023, before the Law Commission’s final report in September 2023.

This has led to a draft bill amending the Arbitration Act 1996 that is now progressing through parliament; it is likely to become law later this year.

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