Born in Sheffield, Hobson completed an apprenticeship in metalworking, and worked until the 1890s with Britannia metal at Atkin Brothers.
This experience increased support for the new Independent Labour Party (ILP), with which Hobson had some sympathy, although he never joined, instead retaining membership of the Liberal group on the council.
During the 1890s, Hobson became wealthier, setting up first a greengrocers' shop, then a brick making firm, and finally dealing in property.
Hobson refused to resign, but Arnold Muir Wilson, a Conservative Party councillor, brought a prosecution against him, and he was sentenced to three months in prison.
On release, he again became involved with the trades council, and arranged a deal between its rival Liberal-Labour and Independent Labour Party supporters.