Episode 1.3[]
Grace asks Thomas to give her two more shillings to pay for her dress; he tells her to buy something colored red. Meanwhile, two IRA members meet with Thomas at The Garrison Pub, telling him they would pay good money for the stolen guns from the BSA factory, should the Peaky Blinders gang be in possession of them. Thomas confronts Freddie Thorne, who still hasn't left the city, and tells him that his marriage to Ada will not last. Meanwhile Sergeant Moss threatens Thomas, telling him that Ada will be thrown in jail for sedition if Thomas does not deliver Freddie to the police.
As a gesture to gaining his trust, Thomas also warns Billy Kimber that the Lee family is going to be at the Cheltenham races, and that they are planning on robbing Kimber’s bookies.
Thomas has another nightmare of the war, and the next day heads to Cheltenham with Grace. After taking back Kimber's money from the Lees, he makes a deal with Kimber, offering members of the Peaky Blinders to be used as security for Kimber. Kimber agrees, on the condition that he gets to spend a few hours with Grace. Initially Thomas agrees, but he heads to Kimber's mansion and interrupts them, lying to Kimber that Grace has the clap, thereby saving her.