How would the Channel battle change the development of the Dominion or colonial navies?
Short answerAustralian and Canadian naval expansion would likely continue and accelerate because Britain needs their ships and personnel to help restore imperial fleet strength.
NotesThe losses create a manpower problem as well as a shipbuilding one for Britain. The Australian and Canadian navies would therefore keep expanding, distributing fleet strength and personnel across the empire while the Royal Navy rebuilt. That expansion could create friction with the United States. The larger imperial requirement would still make Dominion naval growth an important part of reconstruction.