Hi colmc1
I can't see any reason why cancelling your appeal would have any affect on your current claim.
There normally has to be six months between a decision to refuse ESA and a new claim, but this does not apply if your condition has worsened since the refused claim.
Your deterioration in health will not be taken into consideration for your appeal as it occurred after the adverse ESA decision. However, if medical evidence can shed light on your condition at the time you were refused ESA, for example, if the condition you had has only now been properly recognised and not at your previous medical assessment, it may be helpful to your appeal.
Hope this is helpful
Derek