Hey, keep ignoring the Scots, that worked out so well for you this election
If I were the Labour leadership, spinning off Scottish Labour as its own party would be my first priority.
There is a danger here of playing into the SNP's hands as giving independence to the Scottish part of the Labour party may be seen as an "endorsement" of some sort, but in all honesty it's the best course of action.
Scottish voters do not have the ability to decide governments, and Labour need to focus their message on winning over the ones that can win them an election - English voters. And we've all seen the political differences between Scottish and English voters right now.
That and Scottish Labour is a joke right now. An absolute joke. And while Jim Murphy still prances around pretending to be a "leader" you just cannot take them seriously at all. Why someone from Labour HQ in London hasn't told him to walk away right now is ludicrous.
As for Scottish Labour, they need to jettison everyone at the top, distance themselves from Jim Murphy, and restructure themselves into a modern socialist and progressive force with actual ideas instead of "we cannae afford independence". That and pray for a miracle, as there's a good chance that next year's Scottish Parliament election may see them beaten into third place behind the Tories.
Where does Ed Balls go from here? Would he have stayed on and ran for leader if he didn't lose his seat or would he have gone down with the ship?
Ed Balls, like any ex-politician, will find it easy enough to get a job as a consultant in the city, in the USA, or somewhere else. For guys like him, being a politician is a means to an end.