Okay, i remember this quest, except i never did it. Here's what i would do. Accept to help him, then run up a hill where he can't follow you. Once you got rid of him, proceed to the witch alone, kill her, and return to the barbarian. It should be okay then, though i'm not sure. Just try what i said, but save before you do it.
Or you could use a bow, circle around the witch, so you don't hit the barbarian, and finish her off with a couple of well aimed shots.
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