He took his first win in the series the same year in the second race at Castle Combe, having crashed out of the lead in race one. In 2004, he became the first driver for eleven years to win a round of the British Formula 3 Championship whilst not driving a car from the Dallara company.

2005 saw a mixed year for Watts. Unable to remain in Formula Three, he contested a handful of races in various disciplines. The same occurred in 2006, though he did make a brief