Britain considers "Palestine" to be a nation already

From the British Consulate-General Jerusalem website:

UK and Palestine sign the first treaty between the two nations

This agreement is the first ever bilateral treaty between the two nations

The UK’s Foreign Secretary, William Hague, visited the Occupied Palestinian Territories today (3 November) for his first visit to Palestine since he assumed office. The Foreign Secretary is visiting the OPTs as part of a regional visit that includes Israel and Egypt.

The Foreign Secretary met Prime Minister Dr. Salaam Fayyad and Foreign Minister Riyad Al-Malki today in Ramallah.

The Foreign Secretary and the Prime Minister discussed a wide range of issues, including Gaza, the peace process and the economy. After the meeting the Foreign Secretary and Prime Minister signed the first bilateral treaty between the PLO and the UK Government. This treaty is designed to enhance cooperation in the field of film.

While the text properly says "Palestinian territories" and that the agreement was with the PLO, the headline and subhead were also written by the Consulate.