After 1936, the RN had no lack of funding and the UK was building ships to the absolute limit of it's ship building capacity, which even in the mid 1930s was greater than all the Axis powers combined. With no war, the RN would have had a navy by Jan 1942, that was larger than all the Axis navies combined plus the RN was modernizing it's older ships as well, with Renown, Warspite, QE and Valiant being completely rebuilt, with more planned (including Hood), but cancelled due to war.RN n the 1930s was in a similar position to the US today - huge expensive navy, too big to keep modernizing to the rapidly evolving standard, spread all over the world and teetering closer to obsolescence with the technology of the previous era.