Boiler Bri,
As Jason has said, the solution is very much dependent on the quantity and size. I imagine that if you are lining with rubber the internal diameter is greater t han 10 – 12 mm. I think my first approach would be with a rotary broach mounted on the lathe cross slide. Some while ago, I made such an animal from a redundant rotating centre and made my own broaches from hardened silver steel rod.
It was quite effective, producing reasonable hexagonal holes in brass. Straight flute broaches are available commercially if you are into quantity production and would thereby justify their cost. Alternatively, a carbide burr such as the two in the middle of the picture below might do the trick.
Certainly easier than hardening yourself and available for less than a tenner the set from the Far East and probably closer to home, too.
John