The Sea slug was always a very clunky weapon system, the lattice loader on the Counties whilst impressive to look at, also was a maintenance nightmare and the beam rider nature of the weapon meant that it was tailored to hit bombers and nothing else. If it had a single or twin arm launcher like the USN had for the Talos and other early SAMs it would have been better.
That's probably optimistic - the USN Talos cruisers were quite a bit bigger, and a lattice is pretty much the lightest way of handling the loads involved here.
I like the idea of using the Bloodhound/Thunderbird from the army as a joint weapon system, cuts down on development costs and eases maintenance requirements too, and allows a longer service life as the weapons are updated together.
The three services would absolutely hate it, but it's the sort of thing I could see Sandys going for. The fact that they already had a lot of commonality between Bloodhound and Thunderbird (control and homing systems were essentially identical) helps a lot here - the Navy are the odd man out here, and Mountbatten is wily enough to sacrifice Sea Slug if needed to protect the rest of the navy from Sandys.
Getting rid of the Tiger and Blake is a huge plus, their refits were absurdly expensive and keeping the three CVL's around, although expensive is a far more useful prospect as they're truly multi-role ships , and would be good to have the Wessex with a bit more grunt to it.
Lion,
Tiger &
Blake is really "jam tomorrow" for the RN - they're cancelled without any replacement, on the promise of more Batch 2 County class and a slightly better missile. That fits with the Navy role post-Sandystorm: colonial policing East of Suez at lower cost than the Army could, and getting convoys across the Atlantic in a hot war. You need carriers and marines for the former, escorts for the latter: the three sort of fit in the heavy escort role against
Sverdlov class cruisers, but that's about it.
The CVLs follow logically along from this: the RN need more helicopter decks, and in OTL the
Tiger class were an embarrassment they had to do something with (being too new to scrap) - which turned out to be a conversion. The obvious alternative is the CVLs if they need something else.
Wessex with more power is more or less as OTL - advanced very slightly because the RN has a little more cash.
Shame there's no replacement for the Sea Cat mentioned, those things were hopelessly obsolete by the Falklands War, and although Sea Wolf was their replacement, perhaps a push, going off the joint weapons system development of the Thunderbird could also see the Rapier introduced as a SAM system for the RN too for its smaller combattants. A Type 21 would be a damn sight better protected with a Sea Rapier than a Sea Cat. Sea Wolf could still be developed as a terminal/short range weapon system (and maybe offered to the Army as an anti-helicopter measure) too.
Rapier is interesting, and heavily intertwined with Sea Cat. First contract for what became Rapier was issued in 1960, between when Sea Cat was first shown at Farnborough and first going to sea. Both weapons are supposed to replace light anti-aircraft guns: given that the RN just had to adopt an Army missile, I would expect the Army to get Tigercat a bit early, followed by the RAF Regiment.
The follow-in starts to look more like Rapier: both Rapier and Sea Wolf have similar requirements which are rapidly going to converge onto "replace Sea Cat/Tigercat". The Rapier development looks awfully like an improved Sea Cat - SACLOS rather than MCLOS guidance and a faster missile, but otherwise it's still a lightweight optically guided system. That comes into service in the early 1970s as a drop-in replacement for Sea Cat, with essentially the OTL Blindfire radar system being available immediately since all-weather performance will be a Navy requirement. Range is pretty similar (largely due to Rapier having a smaller bang), but since it's a drop in replacement for Sea Cat rather than needing a major upgrade we would expect to see more of them. That would be really helpful in places like San Carlos.