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Let say, Germany decided to go East first and fight a defensive war on the Western Front, thus killed off the arguably best casus belli for Britain. Then, throughout the war, they managed to avoid clash with British ships. This, together with intensifying domestic problems such as Ireland, forced Britain to stay neutral permanently.

In this case, what would be the impact of this neutrality on British economy and industry?
It is certain that their macroeconomic conditions would be much better, it would not face high debts and deficits, and also earn lots of profits from war trade, at least by selling food, raw materials and some goods like processed food, machinery, equipment, armaments (to Entente) or tobaccos, footwears, clothing...(for both sides). They might even grant secured loans to the Entente.

On the flip side, British industries might never be modernized because of lack of motivation. Notice that British industries were seriously obsolete compared to the US and Germany by 1913, and there were no signs of modernizing and catching up in new industries before the war IOTL. And the existence of a Liberal government led by Asquith would butterfly away any kind of interventions similar to the war efforts or the formation of Central Electricity Board in 1926 OTL.
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