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This is not a new concern, but it is interesting that the LCJ should raise it now. Despite the hike in court fees, I expect any commercial arbitration is likely to cost more to resolve in arbitration than in the Commercial Court because of the costs of the arbitrator(s). Arbitration can be quicker (and therefore cheaper) and arbitrators are not bound by the CPR and can make decisions about the conduct of a matter to move it more quickly etc. However the principal advantages of arbitration (to clients) appear to be confidentiality and enforceability internationally through the New York Convention.

I wonder if the LCJ's point is a (very) subtle criticism of the increase in court fees and the Government's unsympathetic approach to the administration of justice, suggesting as he does that litigation through the courts still has a lot to offer?