Food and childrens clothes, for example, are outside the scope of VAT so will not be affected. I would advocate more "essentials" (not things like sky) being exempt and the VAT rate going up to 25%, that way the low income people's cost of their weekly shopping basket falls and the higher incomes will contribute more through higher spending on non essentials.
You could argue that raising income tax is fair but we already have a 50% rate - if you raise it further the UK ceases to become an attractive place to live. If that happens you lose the incomes altogether as people relocate. This is already happening as Switzerland is aggressively targetting our financial services sector by offering big tax breaks to companies and low rates of income tax.
Whatever we think about the bankers, we need them. For instance Barclays generated tax revenues of £500m in the first three months of the year predominately through investment banking. £2bn a year is a lot to replace.