Is that canvas showing underneath? It's very difficult to tell on the internet, so I'd take it to a tyre place and get a proper opinion.
But if that's gone deep - yes, replace it.
It's probably safe enough to get to a tyre place if it's not too far away and you drive sensibly but like other comments, get it replaced ASAP.
I've had a bulge come on a 2 week old £200 run-flat before as a result of a pot hole, it's annoying as hell but do you really want a blow out at 70mph?! It's just not worth it...
The thick rubber on the sidewall near the wheel is just the rim protection. It is safe to drive on (based on what can be seen in the images), and isn't an MOT fail as it has not gone down to the steel cords / inner tyre structure.
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