The first thing I would do is establish whether the kart really has lost pace. Do you know anyone with a bit more experience who could take it out for a session or even better swap karts with them. That way you could establish whether the brakes really are a problem.
If the driver doesn't have confidence in his brakes then there is no way he is going to be on the pace, especially in race situations.
Another thing is it doesn't sound like your team is of much help in the situation you find yourself. Perhaps you should consider running yourself and taking the financial pressure off your weekends.
Finally as your lad is 13 you have to have realistic expectations when he is competing against 16 year olds. Yes you have to have talent to do well in karting but experience is just as important and that can only be gained with time.
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