Genuine question: there's the revenue aspect to think of, where will the government get their money from? You could argue that new car sales (conventional cars) will take a kicking in the coming years off the back of this news, and yes people will start to drift over to EV's, but again, can you expect the vast majority of motorists to fork out on a new (EV) car, if they don't actually have to?! Then there's the eventual dip in revenue that would have come from sales of fuel, from VED, etc etc... The effect on the car industry will be fascinating, that much is true.
UK car sales have already been on a downward trend even before covid, Brexit or the confirmation of bringing this forward. The original plan of 2040 was announced in 2017, bringing this earlier was actually announced around 2 yrs ago, when it was updated to include hybrids so long as they were capable of 50km (31 miles) under electric power. This new announcement is only really confirming that new hybrids can only be sold until 2035.
As far as revenue. They are looking into toll charging, VED and fossil fuel taxes are likely to be adjusted, so although you would pay more than an electric vehicle it won't be overly expensive.
There is over 40 million cars in the UK, very few are electric or hybrid, it is going to take a good few years to replace most of those cars with electric.
Based on pre covid buying patterns, Ford reckon it will be 2025 before more than half of their car sales will have some sort of electrification.
Ford have already realised that car sales are falling in many countries and are putting other measures in place to continue trying to make money with fewer car sales.
For instance, Ford have ties with the company that hires out the electric scooters in Milton Keynes, they have converted the warehouse that they were recently producing ventilators for the NHS, to maintain and repair the scooters.