Foreign Office reacts badly is the prediction (8)
I believe the answer is:
forecast
'the prediction' is the definition.
(forecast is a kind of prediction)
'foreign office reacts badly' is the wordplay.
'foreign office' becomes 'fo'.
'badly' indicates an anagram.
'reacts' with letters rearranged gives 'recast'.
'fo'+'recast'='FORECAST'
'is' acts as a link.
(Other definitions for forecast that I've seen before include "Fear Scot in prediction" , "Predict (event)" , "Prophecy" , "Predict as with weather" , "Expect" .)