Bedding actually played a fairly large role in SMLE accuracy. This was largely ignored and forgotten when milsurps were turned into cheap sporting rifles. Fortunately for those who used them as hunting tools medium size game offer up a pretty good size target and even in this role and configuration the LE was hugely successful. The SMLE bbl is pretty light and that is where heavy forends and proper bedding supported and tuned the bbl. Now how does this apply to your question?
-You're not likely to ever get a tack driver out of a sported SMLE most people consider any grouping under 6" reasonably good.
-It's impossible to say if free floating or banded is going to be better for your individual sporter.
My suggestion is tighten the bbl band and shoot a group, loosen it a couple turns and repeat and then repeat the procedure until you figure what works best with your rifle. I suspect you will get your best results with the band loosened a turn or two, but not free floating. (This was the case with the one I tried this with before I refurbed it).