Update on the Arbitration Act 2025

Arbitration is the means by which Pubs Code disputes between tied tenants and regulated pub-owning businesses can be resolved. One of the functions of the Pubs Code Adjudicator is to provide an arbitration service for this purpose. The conduct of arbitrations is governed by the Arbitration Act 1996, which has been amended by the Arbitration Act 2025, effective from 1 August 2025. These amendments introduce several reforms to modernise arbitration in England and Wales.  

These changes have notable implications for statutory arbitrators, including for the Pubs Code Adjudicator, in resolving Pubs Code disputes. 

Points to note: 

• The reforms introduced by the 2025 Act apply to arbitrations commenced on or after 1 August 2025. 
• The Act provides a new power for the tribunal to make an award on a summary basis where a party has no real prospect of succeeding on the claim, or on the defence of the claim. 

• The Act strengthens the statutory immunity of arbitrators. The changes made by the Act: 

  eliminate the possibility of costs orders being made against arbitrators if they are removed by the courts (except if they are removed on the grounds of bad faith); 

  clarify that arbitrators have no liability if they resign (unless the resignation was unreasonable, and subject to the possibility of having to repay fees and expenses already received). 

• The Act makes orders from emergency arbitrators enforceable in court, in the same way as orders issued by a full tribunal. 
• The Act changes how courts deal with challenges to arbitration awards on the grounds of jurisdiction. It provides that a court dealing with a jurisdictional challenge cannot re-hear evidence that has already been considered by a tribunal.  

The Pubs Code Adjudicator is inviting industry stakeholders to take part in a consultation on developing bespoke rules for Pubs Code arbitrations. 
This open consultation aims to explore whether bespoke, simplified, and more accessible arbitration rules are needed. 

If you’d like to share your views and help shape the future of dispute resolution under the Pubs Code, make sure to submit your response by 23 October 2025.