Here is a round-up of Tuesday’s headlines:

DAILY MAIL: Father of Four Taken to Court and Fined…Because he Overfilled his Wheelie-Bin by Just Four Inches

Bus driver Gareth Corkhill collected a conviction and a 210 pound fine after he declined to pay a council on-the-spot fine for leaving the lid of his wheelie bin ajar four inches. Story here.

THE TIMES: Judges Set to Deliver Fresh Blow on Terror

Gordon Brown was facing a new battle over key anti-terrorism laws this week with the High Court set to rule against powers to freeze suspects’ bank accounts, the paper said. Story here.

The Sun: Harry Meets His Hero

Prince Harry, who served in Afghanistan, is pictured smiling and relaxing with wounded soldiers recovering in the Forces rehab centre in Surrey. Story here.

The Independent: Can the Bank’s 50bn Pounds Save the Economy?

The newspaper’s Hamish McRae explains in a typical Independent comment-style front page that the Treasury and Bank of England’s line of credit may not be enough to keep the supply of mortgages flowing. Story here.

Daily Express: Miracle Surgery Lets the Blind See

The paper looks at how British doctors carried out pioneering surgery to restore the eyesight of two blind patients. Story here.

The Guardian: You’re Dragging Us to the Edge, Labour Rebels Warned

Gordon Brown moved to stop a potentially damaging backbench budget rebellion with a contrite address to Labour MPs and a promise to hold a review before the autumn on the impact of the abolition of the 10p tax rate. Story here.

The Financial Times: King Rules Out Return to Risky Mortgages

The paper quoted Bank of England governor Mervyn King insisting that the housing market will not see a return to the profligate mortgage lending practices of the past few years while he announced a massive operation to support liquidity in British banks. Story here.

Daily Mirror: Show Some Heart

Chancellor Alistair Darling was going to tell bank chiefs to go easy on families who fall behind with their mortgages, the paper said. Story here.

The Bank of England’s 50 billion pound credit swap for banks hit by the global credit crunch leaves a “sour taste ” for the Daily Mail, which accepts it is a necessary evil.

“How could allowing banks to swap their risky mortgage and credit card debts (amassed during years of lunatically-excessive lending) for cast-iron Government bonds be anything else?,” it asks. “So much for moral hazard.”

But for the Financial Times the Special Liquidity Scheme, which will swap banks’ risky mortgage assets for easily tradeable government debt, is “cleverly designed and welcome move to ease liquidity troubles.”

It says the scheme will protect the tax payer and does not absolve the banks of the consequences of their past lending mistakes.

The Times is also impressed by the “sensible and imaginative response” to the credit crunch but said Britain’s financial authorities took too long to accept the financial markets crisis was hitting the wider economy.

The deal is the “least-bad option available to economic policymakers“, in the view of the Independent, which calls for an inquiry to determine how the regulatory system broke down.

The Daily Telegraph says the scale of the operation is “startling” and says it is now up to the banks to make sure it works.

Both the government and the Bank of England are to blame for leaving taxpayers and borrowers more vulnerable to the global financial crisis.

“Monetary policy has been too lax, borrowing was allowed to spiral, despite a long period of economic growth, and the banks used the era of cheap credit to pursue reckless lending strategies,” the Telegraph said.

Thursday’s cut in interest rates should come as some relief to hard-pressed borrowers, under the cosh from the credit squeeze which has seen lenders raise their rates, cut maximum loan-to-values and tighten lending criteria. Those on tracker rates – that mirror movements in the base rate – will, of course, see a reduction in the amount of interest they pay. Others, though, are at the mercy of their lenders.

A string of high-street names said they’d reduce their standard variable rates following the quarter-point Bank of England (BoE) base rate reduction to 5 percent. That, however, will only partially offset hikes imposed by many of these very lenders in recent times and many commentators argue that the Monetary Policy Committee has failed to go far enough to ease the pain in the mortgage market — and should have acted faster by cutting rates by 0.5 percent.

Nationwide Building Society is raising rates by as much as 0.32 percent on some products and several others — Alliance & Leicester, Chelsea Building Society, Standard Life Bank and Leeds Building Society included — have hiked rates on some of their mortgage products by up to 0.26 percent.

The real problem lies in the gap between the base rate and Libor, the interbank lending rate, which dictates the deals offered to mortgage borrowers: it has ballooned in recent months, despite two cuts in the BoE base — and only a substantial cut in interest rates would have any real impact on narrowing the gap, according to online mortgage company mform.co.uk.

“The crucial factor is the gap between Libor and the base rate; they are massively out of sync and that is dictating terms in the mortgage market,” says chief executive Eamonn Rice. “The 0.25 percent cut will have no effect. The Bank of England has failed to grasp the opportunity to help homeowners and potential borrowers.”