I thought if I didn't get the IR then I would be downgraded to a CPL(H)
Ackshirley, one is never 'upgraded' in the first place because an ATPL(H) in new money is only 'frozen' once the IR is completed, hence you "just" have a CPL(H) pending the IR(H) and the requisite extras (multi crew time, CRM, etc).
you'll have to re-sit everything
Not everything, just a few of the easier papers.
I recall most of the ground schools have been recommending taking the ATPL for some years. The price differential for the training with CPL is small (sometimes negative - i.e. CPL(H) training costs more) but the exam costs are slightly higher with ATPL. All a question of who takes the profit.
h-r