Crazy,
Beta-blockers, especially Beta-2 blockers have an effect on glucose metabolism and kidney function. BUT selective beta-1 blockers probably don't. So maybe a selective blockers is the better choice for someone with diabetic concerns.
In any case, studies have shown that diabetics get MUCH MORE protection after a heart attack from beta-blockers than do non-diabetics.
I doubt anyone seriously suggests that beta-blockers will CAUSE diabetes, in fact thhey are probably UNDER-prescribed becasue of this perceived kidney and sugar involvement.
But I have long said that I think beta-blockers are the WRONG class of drugs to use for simple hypertension unless it is accompanied by tachycardia, migraine, cardiomyopathy/heart failure, or ischemic angina. There are too many less bothersome alternatives for just high blood pressure.