It appears you have a burst in the basement. There are sleeves you can slip on that pipe, I got myself some. 
It also appears you can put a vent there to hide that opening, I would not cut a bigger hole. Just try dripping the tap in cold weather
  
				
			It also appears you can put a vent there to hide that opening, I would not cut a bigger hole. Just try dripping the tap in cold weather
	
 
 
 
 
 
 
 
 