A war without German commerce raiding

If Germany had avoided commerce raiding, would Britain have shifted naval resources to the army or air force?

Probably not directly; the Royal Navy would have sent more strength against Italy and toward the Far East while the other services focused on Europe and North Africa.

Even without German commerce raiding, the Royal Navy would still face a global naval war and would likely concentrate more heavily against Italy and in the Far East. Naval freedom in the Atlantic would therefore reallocate ships across theatres rather than make maritime power unnecessary. Force demand depends on the whole coalition war, not a single opponent's campaign.