The British did not need to win big on any one occasion, Trafalgar was nice but it was in fact the exception to the Royal Navy tradition of grinding out repeated small wins. In fact against Germany the British only needed to suffer sufficient narrow defeats to utterly destroy the ability of the HSF to contest the North Sea as they could make good losses more easily and were starting any conflict in any period of the Riskflotte era from a higher starting base and then in addition they had the advantage of geographical position.
Those numbers don't just apply to the battlefleets but across the board, just as true at the battle of Dover Strait with 23 destroyers as Jutland with 16 battleships, and the British need to win most if not every time week in and week out.
Looking at the aftermath of Jutland is informative the British replace two of the lost battlecruisers and recall one bringing them back to full strength in that rating and in battleships they add three and one, Vanguard, blows up, the German manage to make good their lost battlecruiser and after the battle they lose one battleship to a mine and add two. In other words the Germans being generous they are just as far behind if not further back relative to their opponent even with inflicting significantly more capital ship casualties and this ignores the issues with losses among the light ships while the British lose fewer and again add more.
Can't argue with any of that, although it does show the importance the British placed on their naval security and why it was important they won each and every time they fought.
One of the most interesting things about the pre-war Anglo-German 'Arms Race' is that it can be argued the British were not even racing as they simply carried on building at their typical pace in their typical proportions of battleships/battlecruisers, light cruisers and destroyers during the period 1905-1912.
Yes, although I think they did react with the 'we want 8 and we won't wait' thing. The Germans didn't cause a change in shipbuilding for a decade, the threat was dealt with diplomatically with the Treaty with Japan and ententes with France and Russia.