So what's to do now?

[TheOstrich]

A black hole and increased spending commitments still need financing.

I'm going to hazard a guess it'll be at least 1p on the income tax rate from next April, and possibly a 5% VAT levy on all currently zero-rated food products.
Quick and easy way to spread the load - although I'd still like to see the more wealthy stung as far as possible .....

[Workingman]

Putting 5% VAT on essential foods would be the end of government as we now know it, though many could be forgiven for thinking that might not be such a bad idea!

However, the tax system does need looking at. The bands are too wide and the rises between them too big; a more graduated system would be fairer.

[TheOstrich]

Most EU countries charge 5% and it's got to come from somewhere!