If you like Ishiguro, have you tried Never Let Me Go? It has a dystopian setting, but it is still very literary and wasn't marketed as a genre book.
I don't read a lot of literary fiction, but among the authors I enjoy are Haruki Murakami (Kafka on the Shore) and Umberto Eco.
Or maybe you could give David Lodge a try. I enjoyed everything I have read by him so far. He tends to be very "British", though.
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