Contains spoilers for this episode and earlier episodes.
Tommy Shelby rides through Small Heath with a racehorse, encouraging the neighbours to believe a fortune teller has made it certain to win. The trick draws money into the Shelby betting shop, but his brother Arthur worries that fixing races will anger Billy Kimber. At a family meeting, Arthur announces that a new inspector is recruiting men in Belfast for a campaign against Birmingham's criminals and political organisers. Tommy knows there is another reason for the inspector's arrival.
A theft intended to bring in motorcycles has instead delivered government machine guns and ammunition to Charlie Strong's yard. Polly urges Tommy to abandon the weapons before they get the family hanged, but he keeps them. Inspector Campbell begins his investigation by beating and questioning Arthur, who genuinely knows nothing about the robbery. Meanwhile, Ada secretly meets communist organiser Freddie Thorne, and Grace starts work behind the bar at the Garrison.
Danny Whizz-Bang's wartime terror spills into the streets and results in the death of an Italian man. Tommy appears to carry out Danny's execution to prevent retaliation, but the shooting is staged and Danny survives. The hidden guns remain available to Tommy, while Grace's private contact with Campbell reveals that the new barmaid is working inside the neighbourhood for the police.