Arbitration Bill: Washed Out Before UK General Election

At a Glance

• The Arbitration Bill — containing recommendations from the Law Commission of England and Wales — was widely publicised for its attempts to enhance and modernise the gold-standard Arbitration Act 1996.
• Washed-out for the time being, the Arbitration Bill will not be enacted. It will have to be re-introduced to Parliament after the UK general election on 4 July 2024.
• What reform (if any) is pursued as a part of any new government’s agenda remains to be seen.

Wash-out. A term synonymous with the Great British summer. But also, it seems, for the heralded Arbitration Bill, which was a glaring omission from the legislation considered by Parliament in the frantic few days before its dissolution: the ‘wash-up’ period.

The Arbitration Bill — containing recommendations from the Law Commission of England and Wales — was widely publicised for its attempts to enhance and modernise the gold-standard Arbitration Act 1996. At the time it was introduced to Parliament, the Ministry of Justice explained that the arbitration industry was worth ‘£2.5 billion to the British economy each year in fees alone’ and that the Arbitration Bill would ‘help the UK’s world-leading legal services sector continue to flourish.’

It swiftly moved through a first reading, literally, (on 21 November 2023) and second reading — a debate on the principles of the bill — (on 17 January 2024) in the House of Lords; before interested parties were invited (on 25 January 2024) to submit evidence on the bill to a Special Public Bill Committee (with a short deadline of 6 February 2024). That Special Public Bill Committee thoroughly reviewed the bill and evidence, before providing their observations and suggested amendments (on 27 March 2024). Parliament reported a new report-stage date for the Arbitration Bill, where the suggested amendments would be discussed, setting the date of 12 June 2024.

To all concerned, it was a matter of when (not if) the Arbitration Bill received Royal Assent. But on 24 May 2024, two days after Downing Street was deluged with rain, it was revealed that the Arbitration Bill had not made the list of Acts given Royal Assent.

Washed-out for the time being, the Arbitration Bill will not be enacted. It will have to be re-introduced to Parliament after the UK general election on 4 July 2024. A new government may decide to merely continue the work already completed so far, or may identify a need for deeper reform of the international arbitration regime. What reform (if any) is pursued as a part of any new government’s agenda remains to be seen.