Also, always good to hear updates are in the works!
EDIT: The link:
The 2019 Yearly AARland Year-end AwAARds
You are doing fine work on promoting the awards and I feel the best way everyone can show their appreciation is by voting. Ideally for me, but for others if necessary.
Just caught up on this AAR again and I love how much attention to detail there is.
It is a labour of love and terrifying obsession with obscure detail. I remain pleased and surprised that others appreciate it.
Well there is now anyway. Depends a little on what gets changed in the redux but so far, GB is in prime condition for a massive and ambitious expansion of naval power.
1) a really popular and 'good' war won at sea against what was seen as an up and coming regional rival.
2) imperial preference being firmly established and seen as working not only establishes a massive line of credit for British financiers but also gives a series of reasons why a massive, global refit of naval assets is in order.
3) bit of a stretch this one but the British have no allies on the continent, which means they have no army obligations outside of home and colonial defence. This means at least in the public mind that the army is back to third wheeling behind the navy and the increasingly glamourous and long-ranged airforce supplementing the fleet. Now of course the government doesn't see it that way but that's an impression the public might have.
4) the british have just gotten a massive physical bullion injection and no need to keep it around unless they want to punish the remaining gold standard members a little.
All these in varying ways help push an 'empire building' mentality required for such far reaching, complicated and expensive naval projects that are required if the country wants a modern fleet operating in every major ocean of interest and a mission on every trade route.
(1) That cuts both ways, it's just as much an argument that the current fleet is "good enough". To an extent that's the trap Bomber Command fell into, their claims that the fairly small Raid on Rome had a
significant morale effect has undercut their demands for more bombers (clearly they don't need any more bombers if the existing fleet is so terrifying) while also promoting the cause of Fighter Command (we can't risk the enemy doing the same to us).
(2) Imperial preference and the upswing in intra-Empire/Sterling Zone trade does show why the fleet needs more assets for trade protection absolutely, but that is a different thing from a set piece naval battle. We are back to Corbett and Mahan again.
(3) I'd say this is actually the strongest. It's only the last couple of years I've realised how keen the British were to avoid any sort of fighting on the continent for almost the entire 30s. "Limited Liability" was the policy and the BEF earmarked for continental duties was two divisions until early 1939. The Abyssinian War was pretty much the conflict the Army was intended to fight; medium intensity, in a colonial theatre and leveraging sea power and the Royal Navy to overcome any shortage of troops. It's just going to reinforce the preferred policy option of most of the establishment.
(4) I think Britain does dump the Gold, maybe a portion is kept to offset reserves lost in 1931, but the Bank probably doesn't want too much in the vault or they end up being perceived as back on gold, plus of course they don't need the reserves as the current challenge is stopping Sterling rising too high compared to everyone else (none of who have devalued, unlike OTL). And as you say keeping large reserves will restrict supply, push up the price and wind up the Gold Bloc, whereas selling it will reduce the pressure on them and buy a bit of good will, while also providing a handy pile of cash.
OTL a large 'Re-armament Loan' was taken out, on the grounds re-armament it was a one-off expense. Here I think the loan is wholly or partially replaced by 'Proceeds from Treasury and Bank of England exchange rate management operations' (you don't want to be too public about how bad a deal Spain is getting on the gold-sterling exchange rate

).
On an unrelated note, if the US is dedicating itself to isolationism and cutting down government expense, how is it viewing its own amercian empire? The Philippines for example, and the Panama canal etc.
The Americans might be more willing in TTL to consider releasing the Philippines, but there's no way that they would ever turn over the Panama Canal. That's in our backyard, and Isolationist or no, the Western Hemisphere is ours. Even during the depths of the inter-war period, we had most of our interventions in Central America until the Cold War.
The Philippines were on the path to independence from about 1935 officially and a few years before hand in reality. I say independence, it would be Central/Latin American style - "You can chose any government you like, as long as it's pro-US and Washington approves". Maybe a bit worse TTL, they could make the Filipino Repatriation Act a bit worse perhaps? (Hard to imagine how, but I'm sure it could be done)
As
@Wraith11B says, Panama is staying and the topic is not even to be considered for discussion. Wider South America was a heavily contested mess in the inter-war and the US commercial interests are too strong to ignore so I suspect that continues. As even US isolationists talked about 'the Americas' and 'Hemispheres' not just the US I believe that the American belief that it has the moral right, and duty, to interfere with it's southern neighbours is a powerful and enduring thing.