It affects everything and you must appeal against this
It's called a proposal to cease or a cessation of Statement.
It happened to my DS.
I was told that it's a very very rare thing for a Statement to be ceased before a child is 16 i.e. still in full-time education.
If they take the Statement away he has no legal right at all to any of the support that the Statement says he must have.
Without a Statement any assistance is provided at the whim of the LA and can be stopped immediately without appeal.
He would get no 1:1 help for PE automatically - just what the LA/school feel they can offer.
He may still get the scribe etc but again, if it's not in the Statement there are no guarnatees.
So yes, you should be very very concerned and should write to the LA stating that you are opposed to their proposal to cease the Statement and will appeal to SENDIST should they attempt to do so.
If they then go ahead and formally propose to cease then you must lodge your appeal with SENDIST so the Statement can remain in force until the Tribunal has given its decision on whether the Statement should be continued / stopped.
Please see www.ipsea.org.uk