Consequently, The Motor Car Act 1903 introduced measures to help identify vehicles and their drivers. All motor vehicles were to be registered, and to display registration marks in a prominent position. All drivers were to be licensed annually. County Councils and County Borough Councils were made Registration and Licensing Authorities; the vehicle registration fee was twenty shillings and the drivers licence fee was five shillings The Bill also raised the speed limit to 20mph, with a limit of 10mph by the Local Government Boards, and introduced heavy fines for speeding and reckless driving (the offenders could now be identified more easily). Fines were also introduced for driving unlicensed vehicles.
The growing popularity of motor vehicles continued to take its toll on the road network, which clearly needed greater investment. The Finance Act 1908 passed responsibility for collecting the revenue from Excise Licensing from the Commissioners for the Inland Revenue to the County and County Borough Councils. A 3d tax was also levied on a gallon of petrol. In 1909, the Development and Road Improvement Funds Act provided for grants to local authorities for approved highway works. The Finance Act 1909 - 10 based vehicle taxation on the horsepower of the vehicle (and so it remained until 1949), and stated that the revenue would be used for road improvements only.