Abbeyfield, which runs Alexander House, blames rising costs and a struggle to fill bedrooms.
Copeland MP Trudy Harrison says her move is not related to fears the Tories will lose heavily.
Tory Angela Richardson says her bill would encourage tourists to visit sites with good welfare records.
Green groups are calling on the PM to cancel the project - but how was the decision reached?
The environmental campaigner says "vague" targets for 2050 mean little is currently being done.