Scotland’s largest furniture retailer is making redundancies to “ensure the long-term success” of the business.

Sterling Furniture said it needs to “restructure” and make cuts to its 400-strong headcount in response to the tax hikes announced in the Chancellor’s October budget.

The company has not disclosed how many employees will be affected but said the majority will be in operations. None of the stores is at risk of closure, the company said.

Businesses are facing higher costs of employing staff as a result of measures announced by Rachel Reeves.

Employers’ national insurance contributions will rise to 15% from April and the Scottish Government estimates it will cost businesses an average of £850 per employee.

Sterling was founded in 1974 by George Knowles, who turned a disused paper mill in Tillicoultry into Scotland’s largest furniture showroom after he saw the growing popularity of out-of-town retail parks in the United States.

Still family-run, it has five other stores in Aberdeen, Dunfermline, Edinburgh, Glasgow and Uddingston, as well as a clearance outlet in Dundee and a distribution centre in Auchtermuchty.

In a statement, it said: “In response to challenges in the evolving retail landscape, including the additional tax burden announced in the recent budget, we have been forced to take difficult decisions to safeguard the future of the company.

“Regrettably, after conducting a comprehensive review of our operations and staffing levels, we have determined that restructuring and redundancies are necessary to ensure our long-term viability and success.

“The well-being of the affected staff is our main priority, and we fully acknowledge the impact these redundancies will have.

“We will do everything possible to minimise job losses and, where feasible, support employees in exploring alternative roles within the organisation. We are committed to helping them through this process to ensure a smooth transition.”