The Act followed the Locomotives on Highways Act 1896 which had increased the speed limit for motorcars to 14 mph from the previous 4 mph in rural area and 2 mph in towns. There were some who wished to see the speed limit removed altogether. The influential Automobile Club was split on the subject; the chair of the working group on the Bill was John Douglas-Scott-Montagu MP who took a moderate line supporting speed limits, but was opposed on this by the chairman of the organisation Roger Wallace who were 'strongly against any speed limit' and described Montagu as a 'traitor'. The secretary of the club publicly proposed a 'compromise' of 25 mph without authorisation. Parliamentary debates were described as 'bitter'.
Section 3 made it compulsory for drivers of motor cars in the United Kingdom to have a driving licence from "the first day of January, nineteen hundred and four". No test was required, the licence being issued by the council on payment of five shillings. The qualifying age for a car licence was 17 years and for a motor cycle, 14 years.
The speed limit on public highway was raised to 20 mph from 14 mph which had been set by the Locomotives on Highways Act 1896.
Section 9 allowed for lower speed limits to be implemented after a local inquiry.
Regulations were introduced regarding the braking ability of vehicles.
Legacy
The Act was intended to last for only three years but was extended by the Expiring Laws Continuance Act 1900 until a new bill was seriously discussed in 1929 and enacted. Both the Locomotives on Highways Act 1896 and the Motor Car Act 1903 were repealed by the Road Traffic Act 1930. A Royal Commission on Motorcars was established in 1905 which reported in 1907 and recommended that motorcars should be taxed, that the speed limit should be abolished and raised concern about the manner in which speed traps were being used to raise revenue in rural areas rather than being used to protect lives in towns. Amendments were discussed in 1905, 1911, 1913 1914 under the titles Motor Car Act Amendment bill and Motor Car Act Amendment bill.