It's not going to be the whole Atlantic Fleet. A good chunk of the modern elements is going to be keeping the CSN honest, unless the CSN does something stupid and gets itself wrecked, the USN is going to try keeping it in port
Mahanic Doctrine is very, very emphatic about keeping the battle fleet together, so it is extremely unlikely the US would split up their Atlantic Fleet dreadnought force. Nor is the CSN likely to be enough of a threat to justify dispatching any dreadnoughts south. The Confederates are unlikely to have any more than 3 or 4 dreadnoughts. That's not enough to far blockade the US east coast, and if a dreadnought force that small tries to come in close to New York or Boston or any other US port they will be easy pickings for US subs, torpedo boats, and mines. Nor can the US fleet realistically keep the CSN in port. The Confederates have too many ports with too much coastline to be effectively blockaded when the USN also has to worry about the Royal Navy. Thus the rational move for the US Atlantic Fleet is to ignore the strategically insignificant Confederate surface fleet and concentrate on blockading Halifax.
And if the US Navy does concentrate around Halifax then there is no way the British can realistically reinforce Canada. Afterall, if we assume the US Atlantic Fleet has around 10 dreadnoughts (which is probably low balling it), then the British have to send a minimum of 10 dreadnoughts as part of any Canadian relief convoy just to guarantee an even fight. (Yes, realistically, the US Atlantic Fleet probably won't have all 10 dreadnoughts ready to go at any one time, but the British can't count on that, so they have to assume they will be facing all 10 dreadnoughts.) And even then the Americans are at an advantage in any fight near Canada as they would be fighting much closer to their home base then the British would be. But regardless in OTL the British margin over the Germans in the North Sea at the beginning of World War 1 was only 7 dreadnoughts. Even if we assume the Royal Navy in TL-191 is somewhat bigger than its OTL counterpart (and that the Germans don't also build more dreadnoughts in response), dispatching 10 dreadnoughts to escort a convoy to Canada pretty much completely erases their margin in the North Sea. (And that's just to guarantee an even fight in North American waters. If they want to send enough ships to guarantee they can beat the American fleet they have to surrender their margin in the North Sea entirely.)
So bottom line, the British can control the North Sea or they can try and reinforce Canada. They can't realistically do both which means they need to write off trying to reinforce Canada by sea.
I'm not sure they have enough battle squadrons to go around, battlecruisers maybe, but they only can justify so much yard space IMO, which limits their number of modern BB more than funds
Well IOTL the British had a lot of yard space dedicated to building dreadnoughts for other countries. (IIRC they were building the 2 Turkish dreadnoughts and 2 dreadnoughts for Chile at the start of World War 1). In TL-191 they could always forego those foreign orders to free up yard space for more British dreadnoughts.