The act had considerable political importance as a formal acknowledgement of the separate character of Wales, setting a precedent for future legislation and decisions.

The legislation was introduced by the Liberal Government elected in 1880 under Prime Minister William Ewart Gladstone.

According to historian John Davies, the public houses in Wales had become "recruiting centres for the Conservative Party" following earlier Liberal legislation to restrict the licensed trade, and there was considerable backing among Welsh working class men to restrict their opening.

[7] The Licensing Act 1961 enabled local authorities in Wales to hold polls if their electorate wished to retain, remove or readopt Sunday closing.

[9] This first referendum oversaw the removal of Sunday closing in Monmouthshire, Newport, Cardiff, Glamorgan, Swansea, Merthyr Tydfil and Flintshire.