Hi Carina,
Type 2 Diabetes and Cholesterol problems go together like a horse and carriage. Most T2s are allegedly suffering from the Metabolic Syndrome ( formerly Syndrome X, Reavons Syndrome etc ). The Metabolic Syndrome is a nexus of conditions that usually occur together or in sequence after each other - visceral adiposity ( fat round the abdomen), T2 Diabetes, dyslipidemia( raised Cholesterol), and hypertension( raised blood pressure). All 4 are thought to be the manifestations/symptoms of a deeper underlying cause, perhaps Insulin Resistance. So anybody dxed with T2 is likely heir to raised chols and hypertension thereafter.
Despite the fact the Metabolic Syndrome is an unproven hypothesis it has received considerable attention over the last decade or so. In America they take it very seriously and have been trying to dx people with the Metabolic Syndrome. Last year the medical authorities issued advice to US Docs to forget the Metabolic Syndrome and stop worrying whether patients had it or not. They were advised to just treat each manifestation of the alleged Syndrome ( visceral adiposity, T2 diabetes, dyslipidemia and hypertension) as serious conditions in their own right, wade in and beat the crap out of each one as it occured.
But all 4 of the conditions when present interact with and exacerbate each other. Diabetes ( in both T1 and T2) has adverse effects on chols giving rise to the condition of Diabetic Dyslipidemia ( raised total chols, raised Trigs, raised LDL and lowered HDL ). So chols are a double whammy for T2 diabetics ; not only is dyslipidemia likely to come as part of the deal with T2 diabetes ( because of the Metabolic Syndrome) but also the diabetes is going to worsen the problem. On top of that Diabetes not only rasies LDL ("bad cholesterol") it spefically tends to raise the worse form of LDL which is called LDL-Pattern B (bad "bad cholestrol"). These are small particles of LDL wrapped round a bundle of cholesterol. They are the ones who are most effective at getting into the endothelium ( the space between the first and second layers of the artery walls) and depositing chols in plaques and atheromas( the cause of heart disease).
So, all in all, the relationship between chols and T2 diabetes are a major issue.
Get the numbers down by statins and get the distribution of LDL and HDL right. Once in a safe range you can review the situation and perhaps give diet a go to keep chols in line. But statins are a very effective bullet and generally safe ( with very few of the much vaunted side-effects affecting people). Basically as a T2 diabetic you've got lipid/cholesterol issues for the duration.
40mg of Simvastatin seems to be the NHS norm now, it was demonstrated by research to be the optimal dose as compared to other statins e.g. Lipitor.
And of course the usual answer also applies - Good Control of the diabetes.